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

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. 

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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.