- Ethereum rival Cardano witnessed a spike in accumulation of ADA tokens by large wallet investors.
- Cardano addresses holding between 10,000 and 100,000 ADA tokens have added $83 million worth of ADA since November 7.
- Cardano price outlook is bearish in the short term, experts are monitoring ADA for opening shorts before the end of 2022.
Ethereum rival Cardano, leading smart contract network noted an increase in percentage of ADA token supply held by large wallet investors. Shark and whale addresses, holding between 10,000 and 100,000 ADA, scooped up the Ethereum-alternative over the past month. The price outlook on Cardano is bearish for the next week.
Ethereum rival Cardano notes spike in accumulation by whales
Ethereum alternative Cardano network noted growth in percentage of the altcoin’s supply held by large wallet investors. Based on data from crypto intelligence tracker Santiment, key Cardano sharks have been accumulating steadily since June 2022.
Large wallet addresses have taken dip buying to a new level since the FTX exchange collapse in early November. Wallet addresses holding between 10,000 to 100,000 ADA tokens have scooped up $83 million worth of the altcoin since November 7, 2022.
ADA accumulation by whales
Cardano accumulation by large wallet investors is considered a bullish sign. Typically whale wallet accumulation is followed by mass profit taking by investors.
Cardano price is at risk of decline before the end of 2022
Cardano price is in a downtrend and the Ethereum-killer is likely to nosedive further. A crypto analyst behind the Twitter handle @21blacky believes it is the ideal time for traders to open crypto shorts.
The altcoin could plummet between 37.45% and 89% by the end of 2022 and Q1 2023.
ADA/USDT 4H price chart
Relative Strength Index, a momentum indicator rose sharply against a small increase in Cardano price signaling that the altcoin is overbought. Downside targets for Cardano are $0.1628, $0.0956 and $0.0286.
If ADA climbs above the 50-day Exponential Moving Average (EMA) represented by the orange line, the bearish thesis would be invalidated. Cardano could witness a bullish trend reversal if it breaks out from its multi-month downtrend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.