- Cardano’s ADA volume surge is an indication of a significant price move on the horizon.
- With prices on a downward trend, some experts speculate that retailers are selling off their stash.
Recent data shows that Cardano (ADA) is witnessing record volume, signaling a major move in the coming weeks. Data dating between the 22nd and the 23rd of January reveals that Cardano’s volume soared from 234 million to 453 million. This is a significant increase and one that coincided with a price plunge for the altcoin.
Following these developments, experts warn that there could be an immediate recovery or a greater plunge in ADA prices.
At the time of press, ADA is trading at $0.4714 after a marginal positive change of less than 2%. This seems to be a first step in reversing its trend after losing around 10% in the last 7 days.
If the bearish trend continues, ADA risks losing its prestigious top-ten position. At the time of press, the altcoin enjoys a market cap of a little over $16.5 billion, placing it as the 9th largest cryptocurrency. Gunning its position is Avalanche, which has impressed observers for the past couple of months. In the past 24 hours, the 10th-ranked AVAX has enjoyed gains of around 8%, pushing its market cap to $11.4 billion.
One positive sign for holders is the flow of ADA tokens. As CNF reported, whale transactions have risen, implying that the ADA volumes are simply tokens exchanging hands. Interestingly, the tokens are moving from retail hands to whales.
According to IntoTheBlock, its daily large transaction volume has hit 27.59 billion ADA. Prior to that, the figure was “sitting” at 26.9 billion ADA. It is clear that Cardano (ADA) whales have been on a buying spree in the recent past, thus increasing the number of large transactions recorded.
Historically, whales have been shown to have the power to make or break a digital asset. Whenever whales are buying, not only do they create a demand that drives prices, but they further drive interest in the tokens, attracting retail investors. Similarly, when the whales are dumping, they bring selling pressure that pushes tokens lower.
Despite prices struggling in recent weeks, Cardano remains a favorite among developers. In demonstrating robust development engagement, the proof-of-stake (PoS) blockchain network has emerged as a leader in monthly development activities, surpassing its major counterparts in GitHub Commits. According to insights from the crypto analytics platform Santiment, Cardano has maintained a slight lead over its peers in the past month.
Although the network and its native token continue to enjoy a robust community and positive technicals, ADA remains at the mercy of large-cap coins led by Bitcoin (BTC). BTC has in recent days lost its bullish stride, falling from a monthly high of $49,000 to a dip under $40,000; this has led to a wider bearish trend in the entire crypto market holding captive promising tokens such as Cardano (ADA).
