Cardano Large Transactions Drop: Will ADA Price Follow?
On November 23, Cardano (ADA) large-volume transactions totaled $45.41 billion. Today, this trading volume has dropped to $26.34 billion, indicating that large investors in the market have reduced their exposure to cryptocurrencies.
Sometimes, situations like this indicate that the price of an altcoin may be negatively affected. But will the same be true for the ADA?
Cardano drops in key areas
In the cryptocurrency space, large transactions track the activity of institutional players and whales, with transactions worth over $100,000. The increase in large transaction volumes indicates increased engagement among these key stakeholders.
Conversely, declines often indicate that institutions or whales may be liquidating their holdings. In the case of Cardano, large transaction volume fell by $19 billion in the past six days.
Historically, The price of ADA often increases At the same time, there has been a surge in large-volume transactions. For example, the chart below shows the growth of the indicator between November 16th and 23rd.
During this period, the altcoin’s price climbed from $0.57 to $1.09, suggesting that whales played a significant role in the rise. Therefore, if the current decline continues, the coin may face further downward pressure.
Large transactions are not the only Various aspects of the Cardano ecosystem Facing recession. Overall network activity also dropped significantly, according to Santiment.
On-chain metrics such as active addresses are key indicators of network health. Active addresses are users who have previously interacted with a cryptocurrency and continue to participate in transactions.
Active addresses on the Cardano network have declined over the past seven days, indicating a decrease in user engagement. This trend reflects the bearish Sentiment around the ADA.
ADA Price Prediction: Retracement to $0.82?
On the daily chart, ADA Price Trading About $1.04. However, the Relative Strength Index (relative strength index) reads 76.91. RSI uses the speed and size of price changes to measure momentum.
It can also tell you when a cryptocurrency is overbought or oversold. When a reading is above 70.00, it is overbought. On the contrary, if it is below 30.00, it is oversold.
Considering the current outlook, the price of ADA appears to be overbought and could fall next.
Bollinger Bands (BB) — indicator volatilityalso verified this bias. BB, like RSI, also measures whether an asset is overbought or oversold. When the upper class band When the indicator touches price, it is in an overbought condition.
But when the lower limit touches this value, it is oversold. As the BB cap approaches ADA, the price could drop to $0.82.
However, if Large transactions increase in Cardanothis may not happen. Instead, the cryptocurrency’s value could climb above $1.15.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
