Cardano (ADA) could turn bearish once again after whales start moving again. This activity was uncovered by on-chain data tracker Santiment, which showed unusual activity in dormant ADA wallets after the price crossed $0.3.
Cardano sharks and whales have started moving coins.
A report published by on-chain data tracker Lots of activities.
Considering that these large holders have previously been moving dormant coins, much of this activity could be detrimental to the current ADA recovery. A Santiment report shows that older ADA coins are once again in circulation.
Source: Santiment on X
This showed that the cryptocurrency was about to have its biggest day with older coins being moved around. As the tracker points out, the last time this metric was this high was in April 2022, so past performance is not good news.
ADA price loses footing at $3 | Source: ADAUSD on Tradingview.com
What was the price of ADA last time?
In April 2022, a similar amount of old coins came back into circulation, spelling doom for the ADA price. Looking at the 2022 chart, we can see that ADA ended the month of March strong, with a price of $1.21. But once these coins start moving, it’s game over.
In April 2022, the price of ADA fell from $1.21 to $0.8 before the end of the month. This means the price has fallen by 33%. The downward trend would continue through the end of the year, and by December 2022, the ADA price had fallen to $0.24.
If this repeats, the price of ADA will fall another 30% over the next month, falling below $0.1. This will return prices to September 2020 levels. But considering the activity of sharks and whales, it’s not all bad news for digital assets.
In the same report, Sentiment stated that Cardano sharks and whales are buying ADA quickly. They purchased a total of 43.71 million ADA over two weeks, worth over $131 million at current prices. This suggests that bearish sentiment is limited given that large addresses are still accumulating coins.
At this rate, everything dumped on the open market by dormant wallets will be picked up by sharks and whales. As long as demand continues to match supply, selling may have a negligible impact on the price of ADA.