Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings


  • Cardano network’s large wallet investors have started selling or redistributing their holdings. 
  • Cardano whales have been shedding their holdings since the Ethereum-killer climbed above the $0.38 level on January 21. 
  • ADA price has broken out of the multi-month downtrend and the next bullish target represents a 10% climb. 

Cardano, an Ethereum-competitor and a proof-of-stake blockchain network has witnessed a decline in ADA holdings of large wallet investors. Whales holding between 1000,000 and 100,000,000 ADA tokens have shed their Cardano holdings, probably as a result of profit-taking following the January recovery. 

Also read: The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Cardano whales are shedding ADA tokens since price hit $0.38

Cardano network’s large wallet investors, holding between 1,000,000 and 100,000,000 ADA tokens have started selling/ redistributing their token holdings since January 21. On Jan 21, Cardano price crossed the $0.38 level, an important milestone for the Ethereum-killer. The altcoin reclaimed this level for the first time since the FTX exchange collapse and the prolonged bear market of 2022. 

Based on data from crypto intelligence tracker Santiment, the count of addresses holding between 1,000,000 and 100,000,000 ADA tokens has declined from 2,860 to 2,828. 

Cardano large wallet investor holdings

Cardano large wallet investor holdings

The above chart reveals how whales have shed their holdings – most recently but also in the past – taking profits when the asset’s price has climbed to a local peak. 

Since January 25, whilst Cardano price continued its climb, whale wallets holding between 1,000,000 and 100,000,000 dropped consistently. This suggests whales are booking profits in tranches as Cardano trends higher. 

Cardano bulls prepare for ADA price to rally to $0.4248 

Cardano is currently changing hands at just above the $0.39 level. The Ethereum-killer has arguably reversed its bear market trend, at least in the short-term, after breaking above the November 8 highs at $0.3985 with high volume and very strong momentum. This move favored bullish ADA traders. Furthermore, Cardano has broken above the 50-day Exponential Moving Average (EMA). 

ADA/USDT Perpetual Futures Contract chart

ADA/USDT Perpetual Futures Contract chart

As seen on the ADA/USDT Perpetual Futures chart above, Cardano has printed two consecutive higher highs and higher lows. If there is a continuation of ADA’s uptrend, the 200-day EMA at $0.4248 is a resistance and a bullish target for the altcoin. The next target is the 23.6% Fibonacci Retracement of $0.4740. 

There is a tough resistance zone from $0.4287 to $0.5585. This level could see pullback or retracement in Cardano and impede the Ethereum-killer from its progress towards the 38.2% Fibonacci Retracement target of $0.6205.   


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Lido DAO announces new phase on Ethereum with Simple DVT module

Lido DAO announces new phase on Ethereum with Simple DVT module

Lido DAO voted on the deployment of the Simple DVT module nearly six months ago, it is ready for mainnet as of April 17. Simple DVT helps to make Lido’s technology accessible to more users. LDO price is down nearly 3% in the past day.

More Lido DAO News

New altcoins crash and burn, but this altcoin shows strength Premium

New altcoins crash and burn, but this altcoin shows strength

Binance Coin price shows a bullish pennant continuation pattern. BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin. The altcoin could see a massive gain with the upcoming BEP-336 upgrade.

More Cryptocurrencies News

Cronos price fails to recover despite network upgrade

Cronos price fails to recover despite network upgrade

Cronos (CRO) is an Ethereum Virtual Machine (EVM) compatible chain in the Cosmos ecosystem. A mainnet upgrade was completed early on Wednesday and the asset’s price declined nearly 2% in the past 24 hours. 

More Cryptocurrencies News

XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place

XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place

XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives. 

More Ripple News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP