Cardano (ADA) is in the spotlight in the market as its medium- to long-term growth outlook is painting gloomy potential. Top market analyst Ali Martinez spotted this bearish outlook and noted a lull in Cardano whale activity.
Cardano and impending price consolidation
According to Martinezs post on the X platform, the dullness in whale activity is signaling an impending price drop for Cardano and, at best, a potentially long-drawn consolidation. Per the charts shared, the Cardano whale transaction count is at its lowest level since at least Feb. 8.
Despite a recent milestone in key ADA on-chain transactions, which come in at 88.6 million, the whale count tells a different story. This transaction count comes in at 202, and the value of large transactions featuring 1,000,000 to 10,000,000 ADA slumped from more than 5.9 billion ADA in early March to around 5.79 billion, as showcased by the analyst.
#Cardano is experiencing a lull in whale activity, signaling potential for further $ADA price consolidation or an impending drop.
— Ali (@ali_charts) April 5, 2024
Data from the crypto analytics platform IntoTheBlock (ITB) also sheds deeper insights into this trend. The large transaction count comes in with a 12.56% slump in 24 hours, with the actual transacted ADA worth at least $100,000 coming in at $14.63 billion. While this figure may seem big, it pales in comparison to the $17.52 billion recorded on April 3.
No whale cushion for ADA
While many factors are important in helping a coin regain its value, the bearish outlook of the large transactions means whale support in case of a price drawdown is mostly non-existent. This trend is a threat to the current attempt of ADA to break out of its current price drawdown.
At the time of writing, Cardano is changing hands for $0.582, up by 1.52% in the past 24 hours. This bullish uptick in price comes after a consistent pullback the coin has recorded over the past week. With whales sheathing their swords in acquisition, it remains to be seen whether or not this uptick will be sustained.