Cardano

2024

Billion

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The <a href="https://u.today/cardanos-uptrend-clings-to-hidden-support-while-arbitrum-eyes-ema-milestone-shiba-inus-pattern-slip" rel="noopener noreferrer nofollow">Cardano</a> network is witnessing an awakening of sorts, with ADA whales pumping up the network with an impressive $13 billion in large transactions. This <a href="https://twitter.com/intotheblock/status/1747915671583731726" rel="noopener noreferrer nofollow">activity</a> is notable, particularly when contrasted with Ethereum's $5 billion seven-day average for transactions of a similar size.&nbsp;
The figures are eye-opening, considering Cardano's market capitalization and comparative transaction volume to Ethereum, pointing toward a potentially significant shift in the behavior of large-scale investors within the Cardano ecosystem.
Despite this flurry of whale activity, Cardano's price performance has remained somewhat muted. Recent weeks have seen the price of <a href="https://u.today/cardano-founder-addresses-ada-fud-from-pro-research-team" rel="noopener noreferrer nofollow">ADA</a> losing momentum, breaching key support levels.&nbsp;
<blockquote>
 Cardano whales have been quite active for the past few months. $13B in large transactions (&gt;$100k) is being settled on Cardano daily on average. A significant amount, if you compare it to Ethereum's $5B 7-day average. <a href="https://t.co/8rjeQZaonU" rel="noopener noreferrer nofollow">pic.twitter.com/8rjeQZaonU</a>— IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1747915671583731726?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 18, 2024</a>
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Most notably, ADA has plummeted below the 50-day EMA, a critical indicator that often serves as a litmus test for short to medium-term market sentiment. Losing this support is a bearish signal, often precipitating further declines or, at the very least, a period of consolidation.
The next line of defense for <a href="https://u.today/cardano-founder-takes-jab-at-internet-computer" rel="noopener noreferrer nofollow">ADA</a> is the 100 EMA, which might provide a cushion against further drops. However, with volume also on a descending trajectory, the support offered by the 100 EMA may not be as robust as bulls might hope. A descending volume in the context of falling prices can be interpreted as a lack of interest in buying at current levels, suggesting that the market could be bracing for further downside.
The duality between the significant transaction volumes and ADA's negative price action raises questions about the underlying dynamics at play. Are the whales accumulating ADA for long-term strategic positions, or are these transactions part of a broader redistribution or profit-taking strategies? The answers to these questions are yet to be seen.

Cardano (ADA) Whales Wake up With $13 Billion in Large Transactions

U_Today

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