Altcoin
Is whale interest in Cardano [ADA] enough to sustain its bull rally?
- Whale activity spiked considerably in the last few weeks.
- A few metrics were bullish, but market indicators suggested a price decline.
Santiment’s report on 21 February revealed that Cardano [ADA] was the recipient of increased interest from whales. This was evident from the whale transaction count, which skyrocketed in February 2023.
Source: Santiment
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Moreover, Cardano’s developers pushed quite a few upgrades for the network, the latest and most notable one being the Valentine upgrade, which was released on 14 February.
Interestingly, on 21 February, Input Output Global (IOG) posted a thread on Twitter that was aimed at helping newcomers better understand the Cardano network by simplifying several jargons and technical terms.
We get it, #blockchain-speak can be quite the impenetrable code when you’re just starting out
That’s why we’ve put together a selection of key terms from our glossary, so if you’re a newcomer – or if you just need to brush up on vocab – you can navigate #Web3 like a pro@Cardano
— Input Output (@InputOutputHK) February 21, 2023
Apart from these updates, another reason for the surge could be ADA’s recent price action, which has been in the investors’ favor. As per CoinMarketCap, ADA was up by over 10% in the last seven days, and at the time of writing, it was trading at $0.397 with a market capitalization of over $13.7 billion.
However, the price trend seemed to have changed as ADA’s price registered a decline of over 2% in the last 24 hours.
These can bring trouble
Despite the recent decline in ADA’s price, it somehow remained in demand in the derivatives market, as its Binance funding rate remained high. ADA’s daily active addresses also registered an increase, which suggested more users in the network. However, ADA’s MVRV Ratio declined, which increased the chances of a continued downtrend.
Moreover, ADA’s development activity went down over the last week, which was yet another point of concern.
Source: Santiment
Should the investors be worried?
A look at the ADA’s daily chart gave more reasons to worry, as most of the market indicators revealed that the bears had entered the market. For instance, ADA’s Relative Strength Index (RSI) registered a downtick and was heading towards the neutral mark, which was a development in the sellers’ favor.
How much are 1,10,100 ADAs worth today?
ADA’s Chaikin Money Flow (CMF) also followed the same route and went down. The MACD suggested that the bulls and the bears were in a battle. However, considering the other indicators, it was more likely for the bears to win.
ADA’s Bollinger Bands pointed out that the token’s price was in a less volatile zone, reducing the chances of an unprecedented surge. Nonetheless, the Exponential Moving Average (EMA) Ribbon gave some hope as the 20-day EMA was still above the 55-day EMA.
Source: TradingView
