Cardano Whales Accumulate 100M ADA: Is ADA Major Move Expected?

An unexpected purchase of 100 million ADA by Cardano whales has been reported, raising questions about the token’s next potential movement. Although ADA has recently experienced consolidation, the significant accumulation by large investors suggests potential volatility ahead.

Whales Drive Massive ADA Accumulation

Over 100 million ADA tokens were acquired by Cardano whales within a single day. This purchase followed a week where ADA gained over 13%, leading to approximately 72% of ADA addresses being classified as “in money.”

Despite the recent gains, ADA’s upward momentum has slowed, with its price showing signs of consolidation. In the last 24 hours, a slight decrease was observed, with ADA trading at $1.19 and maintaining a market capitalization of $41.9 billion.

As ADA’s price volatility dropped, whales seized the chance to accumulate more tokens. Crypto analyst Ali Martinez highlighted this whale activity, pointing to the growing interest among high-net-worth investors.

Buying Sentiment Remains High but Fluctuates

Buying pressure for ADA reached peak levels on December 3, as reflected by the buy volume metric hitting 100 and 73. However, this sentiment dropped to 6.6 on December 5, indicating a decrease in purchase activity.

Beyond whale interest, Cardano has achieved milestones on its blockchain. Hydra, its scaling solution, processed over 2 billion transactions in just four hours, surpassing Visa’s daily volume a significant achievement for Cardano’s ecosystem.

Technical Indicators Suggest Possible Price Decline

ADA’s recent metrics reveal potential signs of a price correction. The trading volume for ADA has declined, indicating reduced investor activity. Additionally, its Market Value to Realized Value (MVRV) ratio dropped sharply to 37%, suggesting that many investors may opt to sell for profit.

Velocity, which measures the frequency of ADA transactions, has also decreased, indicating less usage within a defined period.

Cardano’s daily chart reveals ADA trading between $1 and $1.2. The Moving Average Convergence Divergence (MACD) indicator has displayed a bearish crossover, which points to a possible price decline. Analysts suggest this could push ADA toward its $1 support level before another rally begins.

Will ADA Regain Volatility?

The consolidation phase for ADA may not last long, given the combination of whale accumulation and recent blockchain milestones. While technical indicators hint at a short-term price dip, the increased activity by large investors could drive a new bullish phase for the token.

Investors will closely watch ADA’s price movements and on-chain metrics in the coming days to assess whether the next phase will be defined by volatility or continued consolidation.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.