New data shows that a cryptocurrency project whose price is just starting to recover has been suppressed by whales. Large investors preferred to take profits in a resistance zone that was overcome after a long hiatus.
Cryptocurrency whales did not allow passage
As data from cryptocurrency analytics portal Santiment shows, Cardano (ADA) saw bulk whale sales in the $0.38 region, where it climbed again after about a week. Despite being one of the most popular altcoins in the market, Cardano has been criticized for its unstable price movements.
The new data shows that on January 21, when the price started to rise again, investors holding between 1 million and 100 million ADA started selling. Their numbers have now dropped to 31 addresses, which means millions of ADAs are pouring into the market given the size.
Since #Cardano surpassed the $0.38 level on Jan. 21, roughly 31 addresses holding 100,000 to 1,000,000 $ADA have sold or redistributed their #ADA tokens, shows on-chain data from @santimentfeed. pic.twitter.com/rzuM3rai8Z
— Ali (@ali_charts) January 29, 2023
While retail investors prefer to wait, crypto whales see opportunity
Overall, we can see the number of Cardano whales returning to early January levels and now scattered across 2,828 unique addresses. This fact means that the majority of whales think short-term in the ADA.
Meanwhile, ADA failed to break the other important $0.4 resistance and broke out of the range in which it has been trading since mid-October. Perhaps the soon-to-be-launched native ecosystem stablecoin Djed can help Cardano overcome such strong resistance. As Kriptokoin.com, we have included details about Djed in this article.
Could Cardano see $1 in February?
Since the beginning of the year, ADA has been bullish, reaching a year high of $0.39 despite attempts to lower the price. It is currently facing resistance at the $0.40 level, which is hard for the bulls to overcome. If this level is exceeded, ADA will likely continue its momentum. In the case of a slight retreat break during typing.
Despite the bullish sentiment, ADA traders are wary of the current $0.40 resistance, a crucial resistance on the way to reaching $1. It is worth noting that Cardano is supported by several fundamentals that are likely to force ADA to reclaim $1…
Impact of djed stablecoin on ADA price
One of the most important factors that can increase the value of ADA is the Djed stablecoin is expected to be launched in the last week of January. Notably, the stablecoin is predicted to significantly improve Cardano’s prospects by increasing the network’s Total Locked Value (TVL) metric, which is a key indicator of blockchain activity, particularly in the DeFi space.
While Cardano ranks eighth by market capitalization, it is only 27th in TVL among DeFi projects. This inconsistency has caused uncertainty among investors. However, an increase in TVL could make ADA more attractive to investors. On the other hand, we have a rising price with the launch of a new stablecoin (TRX), which we saw on Tron before. This could be evidence that keeps expectations high on the Djed stablecoin.
Cardano development activities
The Cardano team is also preparing other important developments that will potentially increase the price of ADA to $1. For example, the team is working on an upgrade to reveal the first smart contract written in Eopsin, an innovative Python programming language, and add new built-in functionality to Plutus smart contracts.
On February 14, the network will release an update that will enable Plutus to support Schnorr and ECDSA (Elliptic Curve Digital Signature Algorithm) signatures. These digital signatures were touted as smaller, faster to process, and harder to fake, and will eventually help developers access more signature designs.
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