- ADA whale activity has picked up over the past few months.
- But demand for ADA continued to plummet.
Cardano (ADA) has seen a surge in whale activity over the past few months. On-chain data provider IntoTheBlock noted in a January 18 post on X (formerly Twitter) that the average daily whale trading volume for ADA was $13 billion.
Cardano whales have been quite active over the past few months. On average, $13 billion worth of large transactions ($100,000 or more) are settled on Cardano every day. This is a significant amount compared to Ethereum’s seven-day average of $5 billion. pic.twitter.com/8rjeQZaonU
— IntoTheBlock (@intotheblock) January 18, 2024
This is 160% more than Ethereum (ETH)’s daily whale trading volume of $5 billion, the data provider added.
The price sings another song
Despite the surge in whale activity, the price of ADA has not wavered much. The value of the alt, which exchanged for $0.49 at press time, has fallen 19% in the past month.
In the past week alone, ADA prices have fallen 15%. CoinMarketCap showed it
Source: CoinMarketCap
At current values, ADA is back to its pre-ETF price level. The overall altcoin market rally following the approval of a Bitcoin spot ETF on January 10th caused the price of ADA to surge to a high of $0.61 by January 11th, a 21% surge.
However, as excitement over the ETF approval waned and there was no real demand for the coin, ADA’s rise began to reverse. ADA prices have fallen 20% since January 11th.
A clear sign of declining demand for ADA was the key momentum indicator observed on the 24-hour chart. At press time, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were fixed below their respective center lines.
ADA’s RSI was in a bearish trend at 41.11 and its MFI was 48.53. At these values, these indicators show that coin selling is outpacing accumulation.
In a sign of increased liquidity in the ADA spot market, Chaikin Money Flow (CMF) was -0.04 at press time.
A CMF value below 0 is a sign of market weakness, indicating capital removal. This is known to put downward pressure on asset prices.
Source TradingView
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Due to ADA’s underpricing measures since the beginning of the year, the Market Value to Realized Value (MVRV) ratio has been negative since January 4. This means that most ADA investors are holding their coins at unrealized losses.
As of press time, the MVRV rate is -11.77%, so any trader selling the coin at the current price would lose an average of 12% on their investment.
Source: Santiment