On-Chain Data Shows Cardano Whales Selling Over 1 Billion ADA, Signaling Further Pain for the Asset
Cardano whales have been participating in some selling activity lately, according to on-chain data. This indicates that the woes for the asset may not be over just yet.
In August, Cardano didn’t have the best time, experiencing a drop of over 18%. September hasn’t been any better for ADA, as the asset has been struggling sideways around its lows.
Currently, the asset is trading just below the $0.26 mark. The following chart shows the current price action of the cryptocurrency.
It seems ADA hasn’t moved much since the beginning of the month | Source: ADAUSD on TradingView
The flat returns of Cardano in the past week are not significantly different from what has been happening in the broader sector, as Bitcoin (BTC) and Ethereum (ETH) have also been similarly sluggish lately.
However, a bearish signal specific to the asset seems to have emerged, as emphasized by Ali, an analyst at X, in a recent post. According to on-chain data, ADA whales have participated in a sell-off in the past week.
The value of the metric seems to be declining in the past few days | Source: @ali_charts on X
The above chart shows the trend in the overall supply of Cardano investors holding at least 10 million and up to 100 million ADA in their wallets. At the current exchange rate, this range amounts to about $2.6 million at the lower end and $26 million at the upper end.
These holders of a massive amount of the token are called “whales.” Due to their enormous holdings, they are among the most influential players in the network. The chart indicates that the holdings of these large investors have significantly decreased lately.
This group of ADA holders has liquidated a net amount of 1.02 billion ADA (worth around $260 million) in this recent sell-off, which is quite a significant figure.
The fact that whales are reducing their holdings is, of course, not a positive sign for the cryptocurrency, as it suggests that some of these giant holders do not believe the asset will recover soon, hence limiting their losses and exiting the coin.
ADA Continues to Be the Seventh Largest Coin in the Industry
Despite its decline, Cardano is still the seventh largest asset in terms of market capitalization in the cryptocurrency sector, as shown in the table below.
The current market capitalization of the asset is approximately $9 billion | Source: CoinMarketCap
However, the gap between ADA and the eighth-placed Dogecoin (DOGE) has now narrowed to less than $100 million, which means the asset is at risk of falling from its position.
Unless things change quickly for Cardano, considering the bearish movement of the whales, it may be inevitable for the cryptocurrency to slide below the meme coins in the near future.
Featured image from iStock.com, charts from TradingView.com, Santiment.net
