- ADA whale activity spiked on June 5th.
- This caused a temporary rise in the prices of altcoins.
Cardano [ADA] A surge in whale activity during the trading session on June 5th led to a brief rise in prices, Santiment data.
According to the on-chain data provider, there were a total of 309 ada transactions of over $1 million on the day, the highest daily number for an altcoin since April 30.
ADA also recorded 2,106 transactions of over $100,000 on the same day. According to Santiment data, the number of ADA transactions of over $100,000 doubled this week compared to the normal 2024 average.
Source: Santiment
ADA Bears Continue to Dominate the Market
The surge in ADA whale activity briefly boosted the stock price during the trading period, with ADA closing at $0.46, according to Santiment.
but, CoinMarketCap The coin has since given up some of these gains, according to the data, and is trading at $0.45 at press time.
After assessing key momentum indicators for altcoins, we found that ADA’s selling pressure is outweighing the bullish bias – for instance, the Relative Strength Index (RSI) and Money Flow Index (MFI) stood at 48.32 and 47.29 respectively at the time of writing.
At these values, these indicators suggest that market participants prefer to sell existing coins rather than accumulating new coins.
Moreover, the decline in ADA’s Chaikin Money Flow (CMF) confirms the growing selling pressure: at the time of writing, it was in a downward trend and below the zero line at -0.07.
This indicator tracks the inflow and outflow of funds into the coin’s market. Negative values are a sign of market weakness as they indicate capital flight from the asset market.
While whales may have successfully sparked a short-term rally in ADA’s price, the bears continue to exert a greater influence.
An altcoin directional movement index (DMI) reading showed that the positive directional movement index (green) was below the negative directional movement index.
When these lines are positioned like this, the strength of the bears outweighs the strength of the bulls in the market.
ADA/USDT. Source: TradingView
Despite the unlikelihood of a significant price surge in the short term, ADA futures traders are maintaining a bullish outlook as the coin’s funding rate across cryptocurrency exchanges remains positive.
Source: Coinglass
Cardano [ADA] Price Forecast 2023-24
The funding rate is used in perpetual futures contracts to ensure that the contract price is close to the spot price.
When an asset’s futures funding rate is positive, it is a bullish signal. This indicates that there is an increasing demand for long positions as more traders are buying the asset in anticipation of the price increasing.
