Recent analytical insights from JB, a crypto analyst from the Cheeky Crypto YouTube channel, to suggest that Cardano (ADA), one of the leading altcoins in the crypto market, could take a dive before a possible revival.
Anticipating a downward trend
According to JB’s analysis, Cardano may be on the verge of a price drop. Following the cryptocurrency’s recent pullback, which was exacerbated by the unfounded news of a Bitcoin ETF approval, JB predicts that ADA’s price could fall to a range between $0.2296 and $0.2185 before a possible upside reversal take place.
JB further highlighted the sentiment of the broader crypto market, pointing to the Fear and Greed index, which recently stood at 47 – a near neutral position.
Interestingly, as highlighted by JB, this metric deviates from market expectations as many assumed more fearful sentiment following the unsubstantiated ETF news.
Additionally, to get a clearer picture of ADA’s potential trajectory, the analyst touched on fundamental factors related to Cardano. Within the 24 hours prior to JB’s analysis, there were 38,256 active ADA addresses on the Cardano blockchain.
Of these, 31,330 addresses were receiving, while 27,599 addresses were sending. Additionally, during this period, ADA witnessed 55,893 transactions that generated fees equal to 19,908 ADA or approximately $4,841.
Another interesting observation was the addition of 4,086 blocks to the Cardano blockchain, pushing the block height past 9.434 million. When surveying ADA holders, JB found a weekly increase of 0.16% in wallets holding up to 10,000 ADA.
This growth increased to 0.55% last month. Conversely, portfolios with more than 1,000 ADA saw a 0.2% increase over the past week and a 0.08% increase over the month.
Whales’ play in Cardano (ADA) price movement?
Another attention-grabbing revelation from the analyst was the plummeting number of wallets with up to 1 million ADA. This segment experienced a decrease from 2,789 to 2,773. This could insinuate that ADA whales may be participating in a sell-out strategy.
According to JB, their reasoning could be to drive the price down, allowing them to buy back ADA at more favorable rates and paving the way for greater profit margins in the future.
Regardless of the analysis, ADA has experienced a notable price rise over the past week and has maintained a bullish trend over the past 24 hours, rising 2.2% to a trading price of $0.251 at the time of writing.
Moreover, the altcoin’s trading volume has also increased significantly over the past week. In particular, ADA’s daily trading volume has increased in the past 24 hours from less than $95,000 last Friday to even above $150,000.
Featured image from Unsplash, chart from TradingView