Cardano (ADA) Whales Purchase 10 Million Tokens in 24 Hours: Optimism Remains Despite Price Drop
There has been a notable development recently: Cardano (ADA) whales made a huge purchase, buying 10 million tokens in just 24 hours. This move coincided with a period when ADA’s price dropped by 8.82%. This massive buying wave came after Cardano’s recent price increase, showing that major investors still have strong confidence despite the current market correction.
Crypto analyst Ali Martinez noted that whale movements created an optimistic atmosphere in the overall market despite the short-term price decline.
The recent buying by Cardano whales is expected to have a positive impact on the price of ADA in the long term. However, current market conditions do not yet reflect this optimism. Cardano is currently trading at $0.9914, representing a daily decline of 8.82% from its previous high of $1.15.
However, the ADA price has increased by a remarkable 16.92% in the past week. This fluctuation can be considered a reflection of the volatility often seen in the cryptocurrency markets.
Many investors remain optimistic despite the daily declines, seeking balance amid the market’s ups and downs. One strong indicator of this mood is the increasing scarcity of ADA. Currently, the Stock-to-Flow Ratio (SFR) has risen to 291.37, indicating that buyers are withdrawing their tokens from exchanges and hoarding them. Traditionally, such an increase in scarcity is associated with a price increase.
In addition, the Binance trading platform is generally positive in the market. Here, traders who expect a recovery in the price of ADA prefer to take long positions, which is also reflected positively in financing rates. This shows that investors have increased confidence that ADA will gain value.
A positive DyDx Exchange financing rate indicates that traders are willing to pay a premium for their long positions, suggesting that expectations for a recovery in ADA’s price are growing stronger.
Cardano’s MVRV ratio has dropped below 1 to 0.92. This indicates that investors are evaluating the opportunity to buy at lower prices, indicating a potential entry opportunity for the market. Historically, a low MVRV ratio is a common occurrence before price reversals, as investors prefer to buy when prices drop to favorable levels.
In summary, despite the recent price correction, Cardano continues to display significant optimistic indicators. Increasing whale activity, positive market signals, and a promising accumulation trend among investors are creating a positive atmosphere for the future of ADA. Despite the short-term declines, investors maintain their long-term recovery expectations.