Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Cardano (ADA) Large Transactions Decline By $19 Billion Amid Weak Network Activity

Cardano (ADA) Large Transactions Decline By $19 Billion Amid Weak Network Activity

BeInCryptoBeInCrypto2024/11/28 23:33
By:Victor Olanrewaju

Cardano sees a $19 billion drop in large transactions and waning network activity. Is ADA's price headed for $0.82, or can it break $1.15?

On November 23, the total Cardano (ADA) large transaction volume was $45.41 billion. Today, the same volume has dropped to $26.34 billion, suggesting that large investors in the market have reduced their exposure to the cryptocurrency.

Sometimes, situations like this suggest that the altcoin’s price could be affected negatively. But could it be the case for ADA?

Cardano Sees Drop in Key Areas

In crypto, large transactions track the activity of institutional players and whales making trades worth over $100,000. An increase in large transaction volume suggests heightened engagement from these key stakeholders.

Conversely, a decline often indicates that institutions or whales may be liquidating their holdings. In Cardano’s case, the large transactions have dropped by $19 billion over the past six days.

Historically, ADA’s price has often risen alongside a surge in large transactions. For instance, the image below shows an increase in the metric between November 16 and 23. 

During that period, the altcoin’s value climbed from $0.57 to $1.09, suggesting that whales played a big part in the hike. Therefore, if the current decline persists, the token could face further downside pressure.

Cardano (ADA) Large Transactions Decline By $19 Billion Amid Weak Network Activity image 0Cardano Large Transaction Volume. Source: IntoTheBlock

Large transactions aren’t the only aspect of the Cardano ecosystem facing a decline. According to data from Santiment, overall network activity has also dropped significantly.

On-chain metrics such as active addresses are key indicators of network health. Active addresses refer to users who have previously interacted with the cryptocurrency and remain engaged in transactions.

Over the past seven days, active addresses on the Cardano network have declined, indicating waning user participation. This trend reflects a bearish sentiment surrounding ADA.

Cardano (ADA) Large Transactions Decline By $19 Billion Amid Weak Network Activity image 1Cardano Active Addresses. Source: Santiment

ADA Price Prediction: Retracement to $0.82?

On the daily chart, ADA’s price trades around $1.04. However, the Relative Strength Index (RSI) has a reading of 76.91. The RSI measures momentum using the speed and size of price changes. 

It also tells when a cryptocurrency is overbought or oversold. When the reading is above 70.00, it is overbought. Conversely, when it is below 30.00, it is oversold.

Considering the current outlook, it appears that ADA’s price is overbought, and a decline could be next.

The Bollinger Bands (BB) — an indicator that measures volatility, also validates this bias. The BB, like the RSI, also gauges if an asset is overbought or oversold. When the upper band of the indicator toches the price, it is overbought.

But when the lower band hits the value, it’s oversold. With the upper band of the BB close to hitting ADA, the price could decrease to $0.82. 

Cardano (ADA) Large Transactions Decline By $19 Billion Amid Weak Network Activity image 2Cardano Daily Analysis. Source: TradingView

However, if the Cardano large transactions increase, this might not happen. Instead, the cryptocurrency’s value could climb above $1.15.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

ChatGPT’s head of product to testify in the DOJ’s antitrust case against Google

Share link:In this post: ChatGPT’s head of product, Nick Turley, has been added as a witness for the United States Department of Justice (DOJ) in its antitrust case against Google. Nick Turley is the latest addition to the witness list that features representatives from Perplexity and Microsoft. Google ramps up preparation for Turley’s testimony by asking for documents related to the hearing from OpenAI through a subpoena.

Cryptopolitan2025/01/18 16:01

SEC charges New York blockchain engineer over GME rug pull fraud

Share link:In this post: Eric Zhu settled SEC fraud claims for orchestrating a rug pull scheme involving Game Coin. Zhu allegedly misappropriated $553K by moving unlocked liquidity provider tokens to his control. The case marks one of SEC Chair Gary Gensler’s final enforcement actions.

Cryptopolitan2025/01/18 16:01

Analyst Points to the Next Target on the Horizon After the Surge in Bitcoin: “If This Place Is Breached, The Next Stop Could Be 128 Thousand Dollars”

A crypto analyst has spoken about the next target for Bitcoin’s price after its recent rally. Here are the details.

Bitcoinsistemi2025/01/18 14:00