Investors Expect $5 ADA Price as Cardano Whale Activity Hits Six-Month High Despite 32% Price Drop

Amid increased volatility in the cryptocurrency market, Cardano (ADA) whales are strategically accumulating the cryptocurrency at an accelerated pace despite its value plummeting by 32% in the last month.

This surge in whale activity, highlighted by on-chain data providers, indicates a divergence between the behavior of large and retail investors in the ADA market. Despite the recent price decline, whales seem to be positioning themselves for a potential price reversal or long-term investment opportunity.

Recent data from on-chain analytics firm IntoTheBlock reveals that Cardano has witnessed a notable uptick in whale activity, with a daily average of $13.84 billion in large transactions recorded over the past week. This figure is particularly striking as it represents a significant portion of Bitcoin’s current volume, indicating a high activity level among ADA whales.

Cardano whales are busy, with an average large transaction volume of $13.84B a day in the last 7 days.
For comparison, this is a third of Bitcoin's current volume, 5x as much as Litecoin's volume and over 16x that of Dogecoin! pic.twitter.com/xU2XMoEQbM
— IntoTheBlock (@intotheblock) April 29, 2024

Additionally, this volume is five times greater than Litecoin (LTC) and over sixteen times higher than Dogecoin (DOGE), highlighting the disproportionate influence of ADA whales in the market.

Supporting this trend, Santiment, another on-chain data provider, reported a surge in whale transactions exceeding $100,000 on April 29th. On that day alone, 1,776 such transactions were the highest daily count since November 8th, 2023.

Santiment’s data suggests that these spikes in whale activity have historically been associated with potential price reversals, indicating that ADA whales may anticipate a shift in the market sentiment as pundits continue to spotlight the $5 price level.

Cardano ADA Market Outlook

Despite the increased accumulation by whales, Cardano’s price has faced significant downward pressure, currently trading at $0.45. A closer look at the coin’s performance on a 1-day chart reveals that its price is below the 20-day and 50-day moving averages (MAs), which typically act as support levels. This suggests that while ADA whales may accumulate, the broader market sentiment remains bearish.

Further confirming the decline in ADA accumulation, the value of the coin’s Elder-Ray Index has been negative since mid-March. This indicator measures the market’s balance between buyers and sellers, with a negative value indicating that bearish sentiment is prevailing. Despite the recent price drop and negative market sentiment, ADA whales seem to be undeterred, continuing to accumulate the cryptocurrency at an increased rate.

In conclusion, the surge in ADA whale accumulation amid a 32% price drop suggests that these large investors may be viewing the current market conditions as an opportunity to accumulate ADA at a discount or are anticipating a price reversal in the near future.