In recent months, Cardano has seen a marked increase in transactions carried out by crypto whales. However, this increased activity by large wallets was not accompanied by a surge in the price of ADA, Cardano’s native token.
Steadily increasing activity of crypto whales
According to data published on January 18, the average daily transaction volume of crypto whales on the Cardano network reached $13 billion in recent months. This is almost 160% more than the daily whale volume on Ethereum, valued at 5 billion. This is proof of growing interest from large crypto investors in the Cardano ecosystem and its ADA token.
Some see this as a sign that the network founded by Charles Hoskinson is increasingly attracting institutional investors, seduced by its ambitions in terms of decentralized finance and blockchain applications. However, this sustained whale activity has not been accompanied by a surge in prices for ADA. On the contrary, its value has stagnated for several weeks.
Despite the Bitcoin ETF, Cardano (ADA) is still stalling
On January 11, the price of ADA jumped by more than 20%, exceeding $0.60. This, following the approval of the first Bitcoin ETF in the United States. A classic ripple effect linked to investors’ increased appetite for crypto with the ETF. But this upward momentum did not hold. In one month, ADA even returned to around its levels before the announcement of the Bitcoin ETF, losing almost 19% over the period. Currently, it is moving around $0.48.
Technical indicators are also concerning. The RSI and MFI are trading below their respective averages, showing a lack of bullish momentum. The Chaikin index is moving in the negative, signaling continued capital outflows. Furthermore, the negative MVRV ratio shows that most cardano crypto holders are currently at a loss with their ADA. A not very encouraging technical signal.
Despite growing interest from institutional investors, as evidenced by the sustained activity of crypto whales, Cardano (ADA) is going through a turbulent zone with a persistent downtrend. The Cardano network must once again arouse speculative enthusiasm and appetite for risk if it wants to cause a lasting awakening in prices. A complex task in a gloomy global context for cryptocurrencies at the start of 2024.
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