The surge in volume for Cardano’s ADA suggests that a significant price movement is on the horizon. As prices continue to decline, experts believe that retailers are selling off their holdings. Recent data reveals that Cardano’s volume has reached record levels, jumping from 234 million to 453 million between January 22nd and 23rd. This increase in volume coincided with a drop in the altcoin’s price.
Experts are now warning that ADA prices could either experience an immediate recovery or face a further decline. Currently, ADA is trading at $0.4714, with a minor positive change of less than 2%. This small increase may indicate the first step in reversing its downward trend, which has seen a loss of around 10% over the past week.
If the bearish trend continues, ADA risks losing its position in the top ten cryptocurrencies. Currently ranked as the 9th largest cryptocurrency, ADA has a market cap of just over $16.5 billion. Avalanche, the 10th-ranked cryptocurrency, has been impressing observers with its gains of around 8% in the past 24 hours, pushing its market cap to $11.4 billion.
One positive sign for ADA holders is the flow of tokens. Whale transactions, which indicate large trades, have increased, suggesting that ADA volumes are simply being exchanged between holders. Interestingly, these tokens are moving from retail investors to whales.
Data from IntoTheBlock reveals that the daily large transaction volume for ADA has reached 27.59 billion, up from 26.9 billion previously. This shows that Cardano whales have been actively buying ADA, resulting in an increase in large transactions.
Historically, whales have had the power to influence the success or failure of a digital asset. When whales buy, they create a demand that drives prices up and attracts retail investors. Conversely, when whales sell, they create selling pressure that pushes prices down.
Despite recent struggles in price, Cardano remains a popular choice among developers. The proof-of-stake blockchain network has emerged as a leader in monthly development activities, surpassing its major counterparts in GitHub Commits. According to Santiment, Cardano has maintained a slight lead over its peers in the past month.
However, ADA’s fate is still tied to large-cap coins like Bitcoin. As Bitcoin has lost its bullish momentum in recent days, dropping from a monthly high of $49,000 to below $40,000, a bearish trend has affected the entire crypto market, including promising tokens like Cardano.
In conclusion, Cardano’s ADA is experiencing a surge in volume, indicating a significant price movement in the near future. While the altcoin faces the risk of further price declines, it remains a favorite among developers. Nonetheless, its performance is influenced by larger cryptocurrencies like Bitcoin.