Cardano (ADA) experiences price stability as whales strategically accumulate during a recent dip and short-term traders exit the market.
Whales capitalize on ADA’s price drop from March 11 to 20, increasing their holdings.
Meanwhile, the number of short-term ADA traders declines steadily since March 19, signaling a potential reduction in price volatility as fewer rapid transactions occur.
In a recent market development, the cryptocurrency Cardano (ADA) has experienced a period of price stabilization over the past week. Two key factors contribute to this stability: the strategic accumulation of ADA by whales during a previous price dip and a noticeable decrease in the number of short-term traders holding the asset.
Whales Seize the Opportunity From March 11 to March 20, the price of Cardano witnessed a decline, dropping from $0.71 to $0.57. During this period, the number of addresses holding over 10 million ADA increased slightly from 397 to 403, suggesting that whales capitalized on the price dip to bolster their ADA holdings.
After hitting the $0.57 mark on March 20, this trend of accumulation came to a halt, and the quantity of these high-volume ADA addresses remained largely unchanged. However, ADA’s price rebounded to $0.66 between March 20 and March 25, potentially providing profit opportunities for the whales who had recently increased their stakes.
The halt in accumulation since March 20 may suggest a deliberate action by large investors, who are closely monitoring market conditions and waiting for additional price changes before deciding on their next actions.
Cardano Traders Exit, Volatility Subsides
Simultaneously, there was a notable shift in the number of short-term traders holding ADA, defined as addresses that retain the asset for less than one month. After surging from 244,000 on February 1 to 303,000 by March 18, a period during which ADA’s price rose from $0.49 to $0.69, the number of these traders began to taper off starting March 19.
Since then, there has been a consistent decrease in the number of ADA addresses classified as short-term traders, with the count slightly dropping to 299,000 from the peak of 303,000 recorded a week prior.
While this reduction might seem minor, it could signal potential upcoming trends in market behavior. Specifically, a decrease in the number of short-term traders could indicate a move towards reduced price volatility for ADA, as fewer rapid transactions by these traders may lead to a more steady and predictable price movement.