Cardano Whales Hoard During Plunge?, What Could Save ADA From Further Losses

Reynaldo Marquez

3 years ago

2 mins read

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Cardano investors have been heavily impacted by current market conditions with ADA losing its spot in the top 5 crypto by market cap. After an impressive rally during 2021, this cryptocurrency has lost critical zones and could return to previous lows.

At the time of writing, ADA’s price trades at $0.87 with a 2.3% loss in the last 24 hours. In higher timeframes, Cardano records a 19.5% and 28.1% loss for the past 30 days and over the past year, respectively.

ADA’s price seems to be following the general sentiment in the market as larger cryptocurrencies are trending to the downside over macro-factors and general uncertainty. The Ukrainian-Russia conflict and a potential shift in the U.S. Federal Reserve (FED) monetary conflict seem to be operating as the core causes of unrest in market participants.

However, Cardano seems to be suffering more losses than other cryptocurrencies in the top 10 by market cap. In the short term, these losses could deepen beyond $0.85.

Data from Material Indicators (MI) shows major resistance for the bulls at around $0.89 which could keep the price suppressed at its current levels, at least for now. There are around $2 million in asks orders at $0.89, as seen below.

If bulls manage to break above this resistance, the $1 mark stands as the next major resistance with fewer asks orders stacked at those levels. Only $1 million in asks orders sit at that price point.

On the downside, bulls are facing more troubles as liquidity around $0.85 seems to be getting thinner which could suggest further losses in the short term. As Cardano trend lower into its current levels, bid orders went from over $1.5 million to around $900,000.

Cardano ADA ADAUSDT MI 2 — Source: Material Indicators

Cardano Whales Come Into The Picture, Who Is Buying ADA At Current Levels?

If these levels fail, $0.80 stands as the next major support to prevent a deeper plunge into previous lows. However, further data shows that retail investors are buying the dip, in lower timeframes with larger investors have been selling.

As seen below, investors with asks orders of around $100,000 (purple line below) have been selling into current PA, while smaller investors with orders of around $100 (yellow line below) have been buying. Bulls have seen support from investors with around $1,000 (green line below) in bid orders, but nothing significant for lower timeframes.

Cardano ADA ADAUSDT MI 1 — Source: Material Indicators

In higher timeframes, Cardano whales seem to have been buying ADA at current levels for around a week. Data provided by a pseudonym user indicates that addresses holding over 100,000 ADA have seen an increase of over 1,000 ADA during this period. The user added:

Might be too early to tell but potentially we see whales accumulating big again.

ADA Whales could be re-accumulating as a result of the recent improvements introduced to the mainnet. As newsBTC reported, Cardano’s developer IOG is focused on updating the network scalability and throughput and recently implemented the first of three major updates for 2022.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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