In the last 48 hours, Cardano whales have dumped 300 million ADA on the market, causing a stir in the broader cryptocurrency space. The sell-off has caused selling pressure on the market and has impacted the overall price of the coin amid expectations that ADA bulls can help hold up the fort.
Implication of Cardano whales’ action
Ali Martinez, a renowned on-chain analyst on X, shed the spotlight on the Cardano whale action. This has dampened the enthusiasm among market participants and is likely behind the recent drop in trading volume.
According to CoinMarketCap data , in the last 24 hours, ADA’s trading volume plunged by a significant 43.06% to $2.33 billion. This drop reflects the huge apathy in the Cardano market space.
Analysts have argued that the Cardano whale dump triggered this reaction from investors. The Cardano whales could have been overwhelmed by the price performance of ADA and possibly sold off their holdings to cushion their losses.
Generally, whales dump on the market when the price slips and reacquire the asset by buying the dip.
Surprisingly, according to Martinez, on-chain data shows that Cardano whales have not bought the dip of ADA. That is, despite the opportunity for whales to buy the dip, the hold-off suggests possible headwinds ahead.
In other words, their reluctance to buy the dip might signal they do not have confidence in Cardano's short-term price outlook.
Retail investors remain bullish on ADA
In the past month, ADA has not been able to break above its psychological $1 level and maintain it. Despite this volatility, ADA’s Open Interest recently spiked as investors committed to 1.3 billion ADA in the future.
Unlike the whales, these investors have chosen to bet on ADA but adopted a cautious stance on the market.
These retail investors might be eyeing ADA’s movement as it nears its final consolidation phase, as reported earlier by U.Today. According to analysis, ADA should exit the Symmetrical Triangle by March 2025, showing a long term bullish outlook for the coin.
