The price of Cardano (ADA) does not react to the increase in whale activity. Let's figure out why
Date: 2023-07-09 Author: Karina Ziganova Categories: IN WORLD
Despite the increase in whale activity, Cardano (ADA) price action remains neutral.
The Cardano team has made several attempts to solve the centralization problem referred to in the lawsuit by the US Securities and Exchange Commission (SEC). However, their actions did not resonate with netizens.
Crypto whales still believe in Cardano
Against the backdrop of ongoing regulatory squabbles, large investors maintain a healthy level of activity. As you can see in the chart below, since the beginning of June, whales have made an average of 100 transactions worth more than $1 million daily — even though the price of Cardano has fallen to a two-year low of $0.23.
If ADA breaks above the resistance level of $0.30, the actions of major players will be crucial for the recovery of the asset's quotes.
Retail investors are losing interest in ADA
While Cardano's whales remain active, retail investors seem to have become very disillusioned with ADA. The Santiment graph shows that in the period from June 10 to July 6, the number of daily users decreased by more than 2 times - from 104,780 to 49,854.
The continued decline in the number of active addresses suggests that network participants are not yet completely sure that the recent conflict with the regulator will not lead to even greater problems. If the trend continues, ADA price action is likely to be
If there are still few active users, Cardano's price action is likely to remain neutral in the coming days.
Cardano price will consolidate around $0.30
Given the factors listed above, the price of Cardano will consolidate around $0.30 for a few more days. The depth of the market shows that the wall of sales of 10.5 million tokens may prove insurmountable for the bulls. However, if they manage to break through this resistance, ADA will approach the $0.32 mark for the first time in a month.
If it falls below $0.25, the initiative will go to the bears. A massive wall of purchases of 9.37 million coins can neutralize their pressure, but the inability to maintain this level will lead to a further decline.
