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Cardano (ADA) has been among the top performers in the past few days, up 24% on its weekly charts.
However, on-chain data reveal alarming insights, suggesting potential declines for the token.
IntoTheBlock shows institutional players have left the Cardano ecosystem, potentially to avoid impending losses.
ADA’s whale transactions have dipped from $45.41 billion to $26.34 billion in the previous six days – a 42% plunge.
Historically, ADA’s price often mirrors whale transaction trends. For example, the token soared to $1.09 from $0.15 between 16 November and 23 – when whale transfers maintained an upside trajectory.
Source – IntoTheBlockThe current situations suggest upcoming bearish price movements.
Moreover, Cardano appears ripe for profit-taking as the latest surges put around 90% of the circulating supply into profit.
Cardano displays overbought conditions
The Market value to realized value and Relative Strength Index confirm ADA’s risk at its prevailing peaks.
ADA has its MVRV ratio at 76.9%, according to Santiment stats.
That demonstrates overvalued conditions as the market value is notably higher than the realized value.
The figure means holders would enjoy 76.7% realized profit if they sell at current prices.
Moreover, the Relative Strength Index read 78.05 at press time.
The RSI indicator uses price fluctuation size and speed to gauge momentum, revealing whether an asset is oversold or overbought.
Figures above 70 confirm overbought situations, while under 30 indicate oversold.
Therefore, ADA exhibits overbought conditions at present values, and price dips could follow.
The Chaikin Money Flow validates the bearish narrative. It has plunged from 0.25 to 0.15 within the past five days.
That signals money flowing out of Cardano’s ecosystem as investors lose confidence.
The Bollinger Bands, which measures asset volatility, supports the bearish readings.
A token enters overbought when the upper BB touches the price, and vice versa.
The current upper band approaches ADA’s price, hinting at possible dips to $0.82.
ADA price performance
The altcoin exhibits a bullish outlook after reclaiming the support zone at $0.93.
ADA trades at $1.05 following a 6% increase over the past 24 hours.
While the alt will likely extend current gains, the 30% plunge in trading volume suggests impending price falls in the upcoming sessions.
Source – CoinmarketcapBear resurgence would see ADA plunging towards the $0.93 vital support.
Failure to keep this foothold would extend the decline to $0.82 and $0.79 – a 33% dip from prevailing prices.
Nevertheless, digital assets have displayed massive momentum since Trump’s victory, with short-lived declines.
Thus, ADA could witness a swift rebound after the anticipated dip. Reclaiming $1.15 would support more gains for the token.
In conclusion, the latest dips in Cardano’s whale transactions and bearish technical indicators highlight weaknesses behind ADA’s current uptrend.
The altcoin exhibits overbought conditions, suggesting impending dips.
Breaching the support barrier at $0.93 would trigger declines to $0.82 and $0.79.
However, a sudden large transaction influx could shift the trajectory.
Magnified bullishness amid broad market rallies would see ADA surpassing $1.15 and continuing to new ATHs.
The post Cardano whale transactions drop 42%: what’s next for ADA price? appeared first on Invezz
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