Advertisement
AD

Main navigation

Cardano (ADA) Price Rally in Big Trouble: Ominous Data Arrives

Advertisement
Wed, 13/12/2023 - 9:40
Cardano (ADA) Price Rally in Big Trouble: Ominous Data Arrives
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Recent on-chain data has revealed an alarming trend: a significant decline in small wallet holdings, specifically those containing between 1-10 ADA. This drop, observed on Nov. 17, saw a staggering 98.1% decrease in such wallets, a phenomenon that historically signals capitulation and foreshadows a potential reversal in price trajectory.

Advertisement

This disconcerting development comes as Cardano's ADA token enjoyed a remarkable 65% increase in price since the noted date. The price chart paints a vivid picture of ADA's performance, reflecting a surge that momentarily placed Cardano as one of the frontrunners in the crypto market's rally. However, the sudden decrease in small wallets could spell trouble for the developing rally.

Article image
ADA/USDT Chart by TradingView

A decline in small wallet addresses can often be interpreted as a red flag, indicating that retail investors, typically associated with smaller holdings, may be losing confidence in the asset's potential to maintain its bullish momentum. The mass exit of such investors is frequently considered a precursor to broader market downturns, as it suggests a collective move toward liquidation and a reduction in buying pressure.

Related

Advertisement

The price chart for ADA shows a volatile yet upward trend, with recent bullish candles signifying strong buying interest. However, the undercurrent of retail capitulation could undermine this positive sentiment. If the exit of small wallet holders continues, ADA may face an uphill battle to sustain its current valuation.

ADA's price is still showing commendable strength, and the ominous on-chain data presents a potential stumbling block. The substantial drop in small wallet addresses could be an early warning sign of changing tides for Cardano's price rally, but it is too early to make any predictions.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD