HomeNewsCardano Faces Struggle as Whales Take $380 Million Profit, ADA Price at...

Cardano Faces Struggle as Whales Take $380 Million Profit, ADA Price at Risk

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  • Cardano’s price is highly volatile due to large-scale profit-taking and low activity from major investors.
  • ADA has the ability to recover despite the recent market dips because of its strong developmental momentum.

Recently, Cardano (ADA) prices have struggled. It ranged from a high of $0.8104 on March 14 to a low of $0.5689 on March 20.

One of the most important things the Cardano community has noticed is a noticeable decline in activity from big investors, or “whales.” On-chain data points to a slowdown that might be the result of these big players taking a profit.

Santiment claims that starting in late February, there has been a noticeable decline in large transactions, especially those that total more than $100,000.

Source: Santiment

Whale Moves and Trends of Profit-Taking

The Network Realized Profit/Loss measure, which shows ADA holders realized over $380 million in profits after March 20, lends further credence to this tendency toward harvesting gains. Whale transactions have significantly decreased during this time, which is consistent with a broader trend of profiting from recent price increases.

As of right now, ADA’s price on Binance is trading at roughly $0.6471, showing a 6.92% gain over the last week and a 19% decline from its peak this year.

The technical picture suggests that there may be a corrective phase, with ADA perhaps looking to recover within the noted Fair Value Gap between $0.3046 and $0.3736. This is especially evident when examining the 1-day ADA/USDT chart. To explore more details about this development, you can watch the following YouTube video:

Prospects for the Future and Technical Indicators

There is still hope for Cardano despite this expected correction; a recovery to mid-March levels is anticipated. The Moving Average Convergence/Divergence (MACD) indicator, particularly its red bars below the zero barrier, supports the idea of a continuous market correction.

Source: TradingView

A daily close above $0.7328 or a violation of the 78.6% Fibonacci retracement line would indicate a major turn around for ADA. These kinds of moves have the ability to counteract the bearish attitude and even lead to a spike in the direction of $0.9091, which is the 127.2% Fibonacci extension.

Beyond short-term market fluctuations, Cardano’s ongoing development, particularly in GitHub operations, is causing a surge of excitement, as ETHNews previously reported.

With some market analysts projecting an optimistic path that may see ADA reach as high as $10, propelled by continued improvements and its intrinsic value proposition, these advancements might ultimately support ADA’s value.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: [email protected] Phone: +49 160 92211628