Despite starting 2024 on a relatively impressive note, Cardano (ADA) has struggled to maintain the momentum that saw it trade above the $0.6 price level in the first few days of January.
Cardano’s (ADA) price chart on CoinGecko revealed that the digital asset has been on a wild ride characterized by massive and spontaneous fluctuations.
According to findings from the price chart, Cardano (ADA) traded within the $0.60 price region for the first three days in January, after which it started recording declines.
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By January 4, Cardano (ADA) had already dropped to $0.56; the decline persisted, and ADA eventually plunged to about $0.475 on January 8.
Following the declines, which ensued between January 4 and January 8, Cardano (ADA) staged a recovery phase that saw it reclaim $0.6 on January 11.
The recovery was transient, as Cardano (ADA) began shedding off profits again and eventually plummeted to about $0.476 on January 19; the decline that ensued from January 11 could be attributed to Bitcoin (BTC) price actions that orchestrated a sudden decline in the entire crypto market.
Currently, Cardano (ADA) seems to be staging another recovery phase. It is changing hands at about $0.52, reflecting a 2.5% jump in the past 24 hours. However, market watchers and enthusiasts appear more concerned about what could be the reasons behind ADA’s spontaneous back-and-forth price actions.
Cardano (ADA) Whale Actions Spark Suspicions
According to on-chain data from Santiment, Cardano (ADA) whale investors have been involved in substantial ADA sell-offs in the past few days.
Findings revealed that whale investors, boasting 1 million to about 100 million ADA, have sold approximately 240 million ADA between January 17 and January 19, cutting their ADA holdings from 18.3 billion to 8.1 billion ADA.
At present price standings, 240 million ADA will be worth approximately $125 million. This does not erupt pleasant news for the Cardano network. ADA enthusiasts should anticipate a potential bear that could accompany the whales’ actions.
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Cardano (ADA) Appears Poised For Further Declines
Applying basic market principles, one could see that the whale’s actions have not helped Cardano’s precarious state. Without a spontaneous spike in ADA’s market demand, the struggling cryptocurrency could even decline below $0.48, which seemed to have posed significant resistance.
Meanwhile, IntoTheBlock’s IOMAP data revealed that about 53,600 addresses procured 204 million ADA at a minimum $0.48. Should the bear break below the $0.48 constraint, another wave of panic sales might ensue, which could plunge Cardano (ADA) price further.
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