The price of Cardano has faced significant downward pressure over the past week, dropping more than 12%. This recent drop coincides with a broader crypto market downturn, with other major altcoins suffering huge losses over the past week.
Specifically, Cardano’s price decline has largely been linked to the recent sale of all ADA holdings by the Grayscale Digital Large Cap Fund (GDLC). On Thursday, April 4th, the fund announced its decision rebalance your portfolio by liquidating your Cardano assets (around 1.6% of total holdings).
Recording such a negative start to April, after a dismal performance in March, does not help to dispel investors’ growing concerns. Furthermore, the latest data from the network suggests that Cardano price may continue to succumb to downward pressure.
Analyst Predicts Fall in ADA Price as Whale Activity Slows
Popular crypto expert Ali Martinez shared a post on that Cardano whales have been making fewer moves in the market in recent days. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of ADA transactions worth more than $1 million.
Whales refer to entities or individuals that own significant amounts of a particular cryptocurrency (Cardano, in this case). They are often seen as key players in the market, as their buying or selling activities can have a significant impact on the price of Cardano, leading to speculation and potential changes in the market.
According to Martinez, network data shows that there has been a notable drop in Cardano whale activity, suggesting a possible decline in significant ADA transactions. In an almost vertical movement, the whale transaction count fell from around 400 daily transactions at the beginning of last week to 200 daily transactions on Friday, April 5th.
Chart showing ADA whale transaction count, whale holdings, and price | Source: Ali_charts/X
TThe crypto analyst mentioned that the recent slowdown in whale activity could be a signal for “further price consolidation” or a impending decline in Cardano price. A substantial loss of buying activity from large investors could cause the cryptocurrency to succumb to downward pressure, especially from small traders looking to make some profit.
In fact, the Cardano token had a positive start to the year, reaching a high of $0.8 in early March. However, the altcoin has been trending lower since reaching its 2024 peak – collapsing under the pressure of Bitcoin’s falling price.
Cardano Price Overview
At the time of writing, Cardano’s price is around $0.577, reflecting a 1% drop in the last 24 hours.
Cardano price hovers around $0.58 on the daily timeframe | Source: ADAUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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