Journalist
Posted:
- ADA’s rebound above $0.6 was viewed with optimism by technical analysts.
- The current price of ADA was almost 25% higher than the average price at which all coins were acquired.
Cardano [ADA] emerged as one of the best-performing large-cap cryptocurrencies of late, with impressive gains of 32% in the past week, according to CoinMarketCap.
After remaining largely in check while the rest of the market rose, the eighth-largest digital asset found its footing in December, gaining 65% month-on-month (MTD).
Source: CoinMarketCap
There’s a lot to cheer about for the ADA bulls
On the move, the ADA jumped above the key $0.6 level last visited in June 2022. This was interpreted by popular technical analysts as a strong bullish signal. Ali Martinez.
Martinez predicted
“With no significant resistance barriers in sight, the path looks clear for ADA to rise higher.”
He cited $0.8-$1 as the next big challenge, where a breakout would further add credibility to ADA’s bullish narrative.
Whales don’t have much faith in it, but…
Interestingly, the ADA’s rally caused a dramatic spike in whale activity. According to AMBCrypto’s research into Santiment data, transactions worth more than $100,000 increased as the coin moved north.
Source: Santiment
Interestingly, most of the transactions were for sales. After methodically collecting coins while prices were low, whales dumped their holdings at the first sign of profit.
Addresses holding between 1,000 and 1 million coins witnessed a decline since December 5.
Source: Santiment
These liquidations indicated that whales did not have much confidence in ADA’s prospects in the short to medium term.
AMBCrypto’s research into Hyblock Capital’s Whale vs Retail Delta (WRD) indicator revealed a similar story.
Negative values showed that whales had lower long exposure than retail investors, meaning they were not bullish on ADA in the derivatives market.
However, despite being negative, the WRD has increased over the past month and a half. This suggested that whales were increasing their long exposure, which was a healthy sign.
Source: Hyblock Capital
Will the holders resist the temptations?
Meanwhile, most ADA holders were tempted to book profits.
The current price was almost 25% higher than the average price at which all coins were purchased, AMBCrypto’s analysis of Santiment’s MVRV indicator revealed.
Read ADA’s 2023-24 price forecast
Increased profit-taking had the potential to slow ADA’s momentum.
That said, weighted sentiment continued to move into positive territory. An optimistic view could limit investors, sending ADA higher.
Source: Santiment