A recent analytical insight from cryptocurrency analyst JB of the Cheeky Crypto YouTube channel suggests that Cardano (ADA), one of the leading altcoins in the cryptocurrency market, could face a sharp decline before a potential revival.
Downward trend expected
According to JB’s analysis, Cardano is likely to be at risk of a price decline. Following the cryptocurrency’s recent downturn, which was further exacerbated by unsubstantiated news about the approval of a Bitcoin ETF, JB predicts that the price of ADA could fall to a range between $0.2296 and $0.2185 before an upward reversal occurs.
JB highlighted the sentiment in the broader cryptocurrency market, citing the Fear and Greed Index, which recently hit a near-neutral position of 47.
Interestingly, as JB highlighted, this indicator differs from market expectations as many assumed more fearful sentiments following unsubstantiated ETF news.
The analyst also covered fundamentals related to Cardano to get a clearer picture of ADA’s potential trajectory. There were 38,256 active ADA addresses on the Cardano blockchain during the 24 hours analyzed by JB.
Of these, 31,330 were receiving addresses and 27,599 were sending addresses. Additionally, during this period, ADA witnessed 55,893 transactions, which generated fees equivalent to 19,908 ADA, or approximately $4,841.
Another interesting observation is that 4,086 blocks were added to the Cardano blockchain, bringing the block height to over 9.434 million. After examining ADA holders, JB found that wallets holding up to 10,000 ADA increased by 0.16% weekly.
This growth rate expanded to 0.55% over the past month. Conversely, wallets holding more than 1,000 ADA increased by 0.2% over the past week and by 0.08% over the month.
Cardano Play (ADA) Price Movement on Whales?
Another revelation from analysts that has caught the attention is that the number of wallets holding up to 1 million ADA has plummeted. This segment decreased from 2,789 to 2,773. This may suggest that ADA whales may be engaging in a selling strategy.
According to JB, their rationale may be to lower the price, allowing ADA to be repurchased at a more favorable price and setting the stage for larger profit margins in the future.
Regardless of the analysis, ADA has experienced notable price gains over the past week and has maintained a bullish trend over the past 24 hours, trading up 2.2% at $0.251 at the time of writing.
Additionally, altcoin trading volume also increased significantly last week. Notably, ADA’s daily trading volume has surged from under $95,000 last Friday to over $150,000 in the past 24 hours.
Featured image by Unsplash, chart by TradingView