Cardano Rally Cools Despite Recording Strong Weekly Gains
Cardano (ADA) has jumped a staggering 52% in the last week, but recent indications hint that the digital asset’s explosive growth is cooling off. The cryptocurrency suffered a key setback with its decline of 5% in the last day, raising the eyebrows of analysts tracking the asset’s moves.
Technical indicators paint a mixed picture of ADA's current trend. The Average Directional Index (ADX), is a leading metric that measures the strength of trends, and it slipped from 70 to 45.02 within two days. Although this portends a strong trend well above the critical 25-point threshold, such a steep tumble has caught market observers’ attention.
Adding another layer to the analysis, blockchain data shows interesting movements among the largest ADA holders, also referred to as "whales." In this regard, between Nov. 8 and 13, the number of addresses holding between one million and 10 million ADA tokens increased from 2,432 to 2,451 before entering into a consolidation phase.
This whale activity initially contributed to the positive market sentiment, but the recent stabilization in large wallet accumulation suggests a more cautious approach from major investors.
