Oct 9, 2024
6thTrade
Cardano’s ADA token has been showing signs of entering a consolidation phase as big players seem to be holding steady. Towards the end of September, ADA saw a major spike in large on-chain transactions, with transfers exceeding $100,000. This spike, peaking on September 26 with over 5,070 large transactions, was a strong indicator of significant interest from institutional investors and major players. Notably, this activity coincided with a price rise to over $0.40 between September 26 and 27, suggesting that these high-value transactions may have fueled renewed interest in ADA.
Following this surge, however, large transactions have gradually declined, reaching around 2,300 by October 6 and recovering slightly to 3,000 by October 7. This decrease could indicate that the big players are taking a step back, potentially waiting for the next clear signal to re-enter or adjust their positions. With ADA’s high-value transaction activity cooling off, the market may be shifting into a holding pattern, as traders assess future moves. $ADA
Whale Activity in Wait-and-See Mode
Between early September and late September, whales—those holding between 10 million and 100 million ADA—reduced their positions from 405 addresses to 388. Since September 22, however, the number of addresses holding between 1 million and 100 million ADA has stabilized, with 2,443 addresses holding between 1 million and 10 million ADA, and 391 holding between 10 million and 100 million ADA.
This pause in activity suggests that major ADA holders are adopting a cautious stance. By neither buying nor selling significantly, these whales appear to be awaiting more favorable market conditions before making their next big moves. It’s a signal that larger players are staying on the sidelines, likely waiting for a clearer market direction before diving back in.
ADA Price Prediction: Testing the Waters for Next Moves
On the price chart, ADA shows a mild downtrend, with the Exponential Moving Average (EMA) lines closely positioned, indicating a lack of strong momentum. This close alignment of the EMA lines hints that ADA may be consolidating around the $0.34 level, as traders await a more definitive trend to take shape.
While ADA recently broke a key support level at $0.34, there’s potential for further downside testing, with the next significant support level at $0.27. If selling pressure continues, this could mark a deeper correction. On the flip side, a reversal could lead to testing the $0.36 resistance level and even push towards $0.41—a potential 20% gain from the current price.
For now, the ADA market seems to be in a holding pattern, awaiting signals that could define the next big move. This period of consolidation offers traders a chance to assess ADA’s support and resistance levels closely, as both whales and smaller investors keep an eye on the unfolding market dynamics.
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Images Source : Intotheblock & Santiment
