In an interesting development, there is a spike in the number of whales holding more than 10 million ADA in their wallets. 12 more altcoin whales have been added to the wallets in this group in the last two weeks, which means that this investor group has added at least 120 million more ADA to its stash in total…
As altcoin whales Cardano piles up, is ADA preparing for a pump and dump? ?
From January to date, their supply has not been affected, although the number of investors holding more than 10 million ADA has decreased significantly. These investors controlled almost 48% of the supply in 2019, and despite the decline since then, their assets started climbing again in January last year, and in recent days they dominate almost 47% of all ADA supply.
Analyst Aaryamann Shrivastava states that 15.86 billion ADA, held by only 478 whales, could trigger a sudden sale. While Cardano has a circulating supply of 33.75 billion ADA, a drop of more than 10 million ADA could undoubtedly cause a massive price crash.
During this month, Cardano capitulated to selling pressure after altcoin price rallied 54.79% month-on-month. voiding the rally, ADA dropped from critical supports of $1.02 and $1, an important psychological level, leaving investors pessimistic.
These feelings are even reflected in on-chain data
The first disappearing whales slowed their activity to 10 billion dollars after making huge jumps of almost $80 billion towards the end of March. They were whales trading for less than a dollar. This example began to take shape when Cardano set the local summit on April 5.
Naturally, investors who followed them lost interest as soon as the red candles started to appear, and the network saw the number of transactions drop steeply to just 20,000 per day, the lowest numbers Cardano has seen since December 2020. noted that. Until then, average transactions were touching 80 to 100k a day.
As a result, the analyst thinks that the ADA price will consolidate at current levels sometime.
These people don’t have much to hold on to right now as Cardano will likely enter a state of consolidation due to the drop in volatility from its 27-month low. This will limit price fluctuations and cause Cardano to get stuck at its current prices.
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