What does Santiment’s Analysis say About Cardano (ADA)
Cardano had a wild year in 2021, with a big surge to a new all-time high of $3.10…
Cardano had a wild year in 2021, with a big surge to a new all-time high of $3.10 in early September. However, in the months afterward, the popular asset has lost 70% of its value and is now trading at $0.931268 at the time of publication.
Santiment recently added the metrics for Cardano, and with their tools, we can take a closer look at the popular token.
Three metric indicators were taken into account for Santiment’s analysis.
Cardano’s Whale Activity
According to Santiment, the number of addresses with 10,000 to 100,000 tokens has been rapidly increasing.
Source: SantimentHowever, in just three months, the whales possessing 100,000 to 1,000,000 ADA have dumped from 37.0% to 17.7% of the supplies owned.
Source: SantimentThese opposites cancel each other out, resulting in a generally neutral indicator.
Funding rate
As per team Santiment’s data, we can see that traders are shorting at their greatest ratio in a month by combining the average hourly funding of Cardano on both FTX and DYDX.
Source: SantimentFurthermore, Binance’s funding rate, which updates every 8 hours, suggests a significant level of shorts. This current drop marked the greatest short-to-long ratio on Binance since early September 2021.
Source: SantimentThese negative funding rates are a hopeful sign that the public anticipates cheaper pricing. And this frequently leads to quick liquidations, which can push prices higher. These negative funding rates are, without a doubt, a positive sign.
Whale transaction count
The number of transactions worth $100,000 or more might be a good indicator of price changes. Massive surges in whale transactions frequently signal big peaks or bottoms. However, not much has been happening for Cardano (ADA) in this regard.
Both the largest clusters of whale transactions occurred right at local tops in May and September, when the market was at its all-time high.
Cardano has the potential to turn things around. Charles Hoskinson, the founder of Cardano, recently held a surprise AMA on his official YouTube channel to answer questions from the community. In the session, he updated users on Cardano’s current plans and the state of affairs.
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