- 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
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
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.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?