• Large Cardano transaction volume plummets from $45.41B to $26.34B

  • Network activity shows significant decline in active addresses

  • Technical indicators suggest overbought conditions at $1.04

Cardano’s ecosystem is showing notable shifts in whale behavior and network activity that warrant careful attention from market participants.

The most striking development has been the dramatic decline in large transaction volume, falling from $45.41 billion to $26.34 billion over just six days, representing a significant change in how institutional investors and whales are interacting with the network.

Source:  IntoTheBlock Understanding Cardano Whale Behavior

To appreciate the significance of this decline, it’s important to understand that large transactions – those exceeding $100,000 – serve as a key barometer of institutional and whale activity in the cryptocurrency market.

The recent positive correlation between these transactions and price action was clearly demonstrated between November 16-23, when increased whale activity coincided with ADA’s price surge from $0.57 to $1.09.

The current $19 billion reduction in large transactions suggests a meaningful shift in how these influential market participants view Cardano’s short-term prospects.

The declining whale activity isn’t occurring in isolation. Network-wide metrics paint a picture of broader participant disengagement. Active addresses, which measure the number of users actively engaging with the network, have shown a marked decrease over the past week.

This reduction in network participation often precedes price corrections, as it indicates waning market interest and reduced transaction activity.

The technical landscape adds another layer of concern to the current market structure. The Relative Strength Index (RSI) reading of 76.91 places ADA firmly in overbought territory, historically a precursor to price corrections.

This technical signal gains additional credibility when viewed alongside the Bollinger Bands indicator, which shows price action approaching the upper band – another classic overbought signal.

Given these converging signals, market participants should be prepared for a potential retracement to the $0.82 support level. However, this bearish scenario could be invalidated by renewed whale interest, which might push ADA above $1.15. The key to short-term price action likely lies in whether large transaction volume can recover from its current decline.