Cardano’s recent price rally has intrigued analysts, with a curious on-chain metric suggesting a potential link to a mass exodus of small wallets.
Data from Santiment reveals that the mysterious loss of 34,900 addresses holding 1 to 10 ADA coincided with a significant turning point in the price trajectory on November 17th.
š #Cardano had a sudden loss of small wallets back on November 17th, 98.1% of which were wallets holding between 1-10 $ADA. A drop of addresses this size or smaller often indicates capitulation, and a potential price turning point. $ADA is +65% since. https://t.co/MyjAXQhr7m pic.twitter.com/C9nvKbfDC8
— Santiment (@santimentfeed) December 12, 2023
Read Also: Cardano Creator Clarifies His āGrand Conspiracyā Statement With the XRP Community
Correlation and Price Movement
While the precise reason behind this exodus remains unclear, Santiment highlights a striking correlation between the event and Cardano’s subsequent price surge. Since the dip in small wallets, ADA has climbed a remarkable 65%, currently trading at $0.58.
Interestingly, Cardano’s on-chain activity suggests a well-balanced distribution between whales and retail investors. Santiment’s data, spanning September 11th to the present, reveals a relatively stable trend in the number of addresses holding 10 to 100 ADA until the November 17th exodus. This event stands out as a significant drop within this category.
Broader Interest and Market Position
While the number of smallholder wallets experienced a significant decline, the overall number of addresses holding at least 0 ADA witnessed a modest rise between September 23rd and November 17th. This suggests a broader interest in the Cardano ecosystem, despite the exodus of small investors.
As of today, the Cardano network boasts 4.46 million wallets holding at least 0 ADA, while the number of addresses holding 10 to 100 ADA stands at 934,630. This disparity highlights the presence of a diverse investor base within the Cardano ecosystem.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Cardano Creator Calls Out SEC To Distinguish between BTC, ETH, and ADA, XRP Community Reacts
Market Outlook and Future Predictions
Despite recent price gains, Cardano still lags behind some of its competitors. However, market analysts and AI algorithms remain optimistic about the future of the Cardano network.
One such prediction came from Tyler Strejilevich, who envisions ADA soaring to a staggering $33, representing a 6,000% increase over the next 66 weeks, contingent upon a bullish weekly cross for the first time since June 2020.
While the true cause of the mysterious address exodus remains open to speculation, its correlation with Cardano’s price surge adds a fascinating layer to the ongoing narrative.
As the network continues to evolve and attract investor interest, further analysis and observation are required to understand the long-term impact of this event on the Cardano (ADA) price trajectory and its overall market position.
Follow us on Twitter, Facebook, Telegram, and Google News
