- ADA whale enhanced coin accumulation.
- This comes amid a steady decline in the value of altcoins.
cardano [ADA] Whales continue to accumulate altcoins despite a 30% drop in value last month.
Posting to on-chain data provider X (formerly Twitter) into the block ADA noted that last week saw an average daily volume of $13.84 billion in large trades.
He further added that this is equivalent to one-third of Bitcoin. [BTC] Current trading volume is 5 times that of Litecoin [LTC] That amount is more than 16 times that of Dogecoin, the leading meme coin [DOGE].
Also, Santimento’s According to the data, the number of daily whale transactions for this coin has skyrocketed and exceeded $100,000 on April 29th. On that day, these transactions totaled 1,776, the highest daily number for the coin since November 8, 2023.
Source: Santiment
by data provider“These spikes in whale activity have historically correlated with the likelihood of a price reversal.” Is ADA poised for a rally in the short term?
ADA could magnify losses
At the time of writing, ADA was trading at $0.45. An evaluation of the performance on the 1-day chart showed that the coin’s price is below the 20-day and 50-day moving averages (MAs).
These MAs often serve as support levels. Therefore, when the price of an asset falls to these levels, it usually signals that buyers will intervene and the price decline will temporarily halt. However, if the price breaks below these MAs with strong sales volume, a downtrend signal could be confirmed.
ADA price trended below these MAs on April 1st. The decline in the Relative Strength Index (RSI) indicator confirmed the corresponding increase in the coin’s selling pressure since then.
At the time of writing, ADA’s RSI is 35.67, suggesting that the coin could soon become oversold if the downward momentum continues.
According to ADA, the price has fallen by double digits since the price fell below the MA on April 1st. CoinMarketCap data.
Supporting the decline in ADA accumulation, the Elder Ray Index was negative at the time of writing. It has recorded only negative values since March 15, when the coin’s price began a downward trend a few days after peaking at a year-to-date high of $0.77.
This indicator measures the relationship between the strength of altcoin buyers and sellers in the market. If its value is negative, bear power dominates the market.
read cardano book [ADA] Price prediction for 2024-2025
However, the long-term decline in ADA’s value has created a descending triangle.
If sentiment changes, the coin price could rebound from the $0.45 support and trend up to trade at $0.49, and even cross $0.52.
Source: ADA/USDT on TradingView
