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ADA Price Struggling With Whale Activity Low and Criticism Re-Emerging

Last Updated April 8, 2024 1:34 PM
Nikola Lazic
Last Updated April 8, 2024 1:34 PM

Key Takeaways

  • Whale and DeFi activity drops signal bearish ADA outlook.
  • Cardano price faces critical resistance at 0.236 Fibonacci level.
  • Future ADA trend may depend on ascending channel interaction.

Cardano is navigating challenging market conditions, which are highlighted by a decrease in whale and DeFi activities and testing of its price support levels. Investors hold a neutral-to-bearish view of ADA’s short-term price prospects, introducing a layer of uncertainty for the upcoming week. 

Analyst Ali Martinez has identified a decline in whale activity as a significant concern, suggesting potential for further consolidation or a drop in ADA’s price. This sentiment is reflected in a noticeable reduction in transactions exceeding $1 million, which has fallen to 202 per day, a decrease from figures observed in February.

Whales Aren’t Interest in Buying The Dip

The cryptocurrency has faced a notable downturn in recent weeks, with an 11% decrease over the last week and a nearly 21% fall over the past month, making it one of the market’s significant underperformers.

Despite traditionally being a period for accumulation, the current correction has not seen significant buying from whales. Santiment data on whale transaction count indicates a reduced interest from large holders, particularly those holding between 1,000 to 1 million coins, hinting at a sell-off from this group.

Santiment data

Ali Martinez and other analysts view these trends as bearish, potentially leading to price stagnation or further declines. This bearish outlook is echoed in ADA‘s derivatives market, where whales have decreased long positions, contrasting with a higher long exposure among retail investors.

Adding to ADA’s challenges, Grayscale, the world’s largest digital asset manager, recently removed ADA from its flagship Grayscale Digital Large Cap Fund (GDLC), possibly indicating a decline in the coin’s market prominence. 

ADA Price Analysis

Cardano witnessed its last notable price rally starting on October 19, which saw its value ascend from a base of $0.23 to almost $0.70 by December 13 of the prior year. After reaching this zenith, the price was corrected, falling to $0.45 by January 22, mirroring its peak on April 14, 2023. 

Daily chart

This downturn signaled the onset of a bullish trend, propelling Cardano to a new peak of $0.81 on March 14. However, from March 14, Cardano experienced a downturn, breaking below its ascending support channel to $0.57 by April 5, which painted a bearish outlook as the primary narrative.

Currently, Cardano‘s price navigates the resistance at the previously breached support at the 0.236 Fibonacci retracement level. A successful break above this level may suggest a short-term bullish reversal, while failure to surpass it could precipitate a further decline, potentially dragging ADA toward the $0.40 mark.

The future path of Cardano hinges on its ability to interact with the support of the ascending channel, with signs currently suggesting a bearish trend might be the more likely outcome. But if the count at which we saw the completion of a five-wave impulse from last October is correct, ADA is currently undergoing a significant correction. 


Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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