Cardano’s Top Trading Volume Drops from $45.41 Billion to $26.34 Billion: Whale Activity in Decrease
Cardano (ADA) trading volume has dropped from $45.41 billion to $26.34 billion. This decline indicates that large investors, or whales, are losing interest in ADA. Such large volume changes can often have a negative impact on the price. But is this really the case for ADA?
In the cryptocurrency market, large transactions refer to transactions of $100,000 and above made by institutional investors and whales. An increase in such transactions indicates that large investors are interacting more in the market. However, a decrease may indicate that these players are starting to reduce their assets. In the case of Cardano, large transactions have decreased by $19 billion in the last six days.
Historically, the price of ADA has risen in parallel with large transactions. For example, an increase in trading volume during the period from November 16 to November 23 caused ADA to rise from $0.57 to $1.09, demonstrating the significant role of whales in the price increase. If the current decline continues, ADA may face further selling pressure.
Cardano’s large transaction volume is not the only aspect of the network that has seen a decline. According to Santiment data, there has also been a significant decrease in overall engagement on the network. Active addresses are a key indicator of network health, as a measure of on-chain activity. Over the past seven days, the decrease in active addresses on the Cardano network indicates that user engagement has decreased. This reinforces ADA’s overall downward trend.
According to current data, ADA’s price is trading at around $1.04. However, the Relative Strength Index (RSI) is at 76.91, which suggests that ADA has entered the overbought territory. The RSI is a key indicator that measures the momentum of an asset and determines whether it is overbought or oversold. An RSI reading above 70 indicates that the asset is overbought and a possible correction is imminent.
Bollinger Bands (BB) also confirm the same trend. BB measures volatility and determines whether an asset is overbought or not. If the price is close to the upper band of BB, it may be overbought. The same goes for ADA; if the price approaches the upper band of BB, a pullback to $0.82 is possible.
However, if large transactions on Cardano continue to increase, this scenario could change. If whale activity picks up, the ADA price could rise above $1.15. In this case, large transactions could counteract the bearish pressure in the market, allowing the price to move upwards.