Cardano [ADA] recently witnessed a significant drop, with a daily decrease of 9.8% and a weekly fall of 19.1%. The ADA/USDT pair on Binance was trading around $0.7465 at the time of writing.
The chart displayed a consistent downward trend, with red candles dominating recent trading sessions.
Despite the bearish trend, there were potential indications of stabilization. The Relative Strength Index (RSI) was at 47.49, indicating that ADA was not yet oversold.
This allowed for further declines before a possible recovery. However, sentiment towards Layer-1 alternative coins like Cardano remained positive, suggesting external factors could trigger a turnaround.
Impact of Large Holders on ADA Price
Insights reveal that whales have sold over 330 million ADA and have not yet re-entered the market during this dip. This significant sell-off by major holders has exerted considerable downward pressure on the coin’s value.
The absence of large holders looking to buy at lower prices could signal a lack of confidence or a strategic approach to re-entry at more favorable levels.
This hesitation introduces uncertainty into the market. Big holders often dictate trends, and their reluctance to buy may discourage small investors from entering the market.
If whales continue to stay on the sidelines, ADA’s downward trend might persist.
Market Uncertainty and Key Metrics
ADA’s volatility, as indicated by the charts, showed a Volatility Index of 0.7511, suggesting moderate price fluctuations.
The Average True Range (ATR) indicated that while price swings were occurring, they were not extreme, hinting at a possible stabilization phase.
Historically, high volatility has preceded significant price movements, making ADA’s current status critical.
Whether there will be a sharp recovery or further decline hinges on external market catalysts.
Despite price variations, Cardano’s on-chain activity displayed positive trends. New addresses increased by 4.79% in the last week, while active addresses surged by 11.99%, based on IntoTheBlock data.
The increasing network activity indicated a growing adoption and interest in the Cardano ecosystem.
While this may not lead to immediate price changes, it highlights ADA’s long-term usability and potential for value appreciation.
Potential Recovery Catalyst: XRP and ADA Collaboration
Speculation has recently suggested a forthcoming partnership between Ripple’s XRP and Cardano’s ADA, with an official announcement anticipated in the coming month.
As per @CardanoFeed, this collaboration could provide ADA with much-needed positive momentum.
Partnerships in the cryptocurrency sector often enhance visibility, credibility, and investor trust, potentially attracting new investments into ADA.
This collaboration could be a crucial step for ADA, leveraging Ripple’s established financial network and Cardano’s DeFi advancements.
However, until there’s official confirmation, this remains speculative. Traders are advised to watch for upcoming announcements for validation and potential market responses.