The Cardano ecosystem has recently witnessed a notable outflow of ADA into the hands of large-scale investors. While the performance of the ADA market is not really affected, things happening in the background could directly affect it.
The Cardano ecosystem has recently witnessed a notable outflow of ADA into the hands of large-scale investors. While the performance of the ADA market is not really affected, things happening in the background could directly affect it.
Cardano price action shows a positive technical outlook as ADA recently ascended above its 21-day exponential moving average (EMA). This technical milestone is often seen as a bullish indicator, suggesting that momentum may be building for a further bullish move. The break above this particular EMA underlines that the rally is not only maintaining its energy but is in fact gaining more strength.
As for the second screenshot, it presents data on the number of large transactions juxtaposed with the price of ADA. Historically, a large number of large transactions can be correlated with increased whale activity, either accumulating or distributing their holdings.
A downward trend in large transactions, while the price remains somewhat stable or increases, could imply that whales are distributing their holdings in anticipation of a short-term top or simply rebalancing their portfolios.
Furthermore, the chart shows a large transaction volume, which has seen a decrease along with the number of large transactions. This decrease in volume could indicate that while the whales are still active, they are executing fewer large-scale transfers, which could suggest a consolidation phase or a temporary reduction in significant market activity.
However, declining whale activity does not necessarily mean a mass exodus of ADA. Whale movements are not always indicative of a loss of faith in the asset’s potential. Redeployment or strategic repositioning can always be a reason behind a relative exodus of assets. But it is not necessarily a bad thing or something that can directly affect the market performance of the asset.
