Cardano’s native cryptocurrency, ADA, has seen a significant price correction of over 11% on the weekly chart. This downtrend comes amidst a broader market sell-off impacting various digital assets. Currently, ADA is trading at around $0.4536, and its market capitalization stands at $16.16 billion.
On-chain data from the analytics provider Santiment has highlighted a surge in large transactions involving ADA. There has been an observable increase in transactions exceeding $100,000, reaching levels not seen since November 8th. Such whale activity could signal an impending price shift for Cardano, propping it up as a token to watch in the current volatile market.
While the ADA community continues to monitor these large-scale movements, the asset’s market value has experienced a significant drop over the past few months. Since March 13th, Cardano’s market capitalization has tumbled by 43%, pointing to high volatility and potential market realignments. These changes come against the backdrop of a -23.69% Year-to-Date (YTD) performance drop for ADA, mirroring the downward trend that has colored the broader crypto market.
ADA’s price dynamics also reflect a critical level of support at $0.45. Should prices dip below this milestone, the token could enter into bearish territory, with a further support level anticipated around $0.42. Conversely, if ADA can clear immediate resistances – firstly at $0.4920 and then at the $0.500 psychological mark – it may spur a rally potentially heading for $0.5250 and possibly stretching to $0.5650 if bullish sentiment prevails.
Notably, the last three months have seen a marginal decrease in active ADA wallets, suggesting a cooling-off in network engagement despite scattered signs of a market recovery. Platform data indicates a 0.13% fall in the total number of active Cardano wallets, setting it apart as one of the few networks to see a reduction in active wallet numbers.
Investors and ADA enthusiasts will be keeping a close eye on these developments. The balance between bearish and bullish pressures, as suggested by whale activity, active wallet changes, and crucial price support and resistance levels, is set to shape the future trajectory of Cardano’s ADA in the current unpredictable market.
