Recent days have seen a surge of massive whale trades on the ADA. A price analysis suggested that a price reversal may be approaching.
Santiment data reveals that Cardano [ADA] has witnessed an increase in huge whale transactions over the last several days.
Since February 3, the number of daily ADA transactions above $100,000 has dramatically grown, according to the on-chain data source.
As of February 5th, 1526 ADA transactions valued over $100,000 have been executed, being the highest day total since May 11th, 2022.
A review of past patterns in network transactions indicates that a significant rise in the number of transactions valued at over $100,000 might predict a later upward or downward change in the asset’s price.
In the next few days, there may be a decline in the price of ADA due to recent events and the present market situation.
First, the altcoin’s Open Interest has decreased over the previous two days, according to statistics from Coinglass. In the two days before to press time, ADA’s Open Interest decreased by 7% to reach $200 million.
The decline in Open Interest over the last two days demonstrated that ADA traders no longer saw long positions as advantageous, predicting a possible negative trend in the days ahead.
In addition, an evaluation of ADA’s price performance found that the currency has traded inside a narrow range since January’s conclusion. Since January 27th, the price of ADA has fluctuated between $0.38 and $0.40. According to CoinMarketCap, the price of the currency at press time was $0.39.
When the price of a crypto asset moves in a limited range, it often suggests a consolidation phase before a possible breakout or reversal.
This might indicate that market players are uncertain about the price’s direction and are waiting for further clarification or a trigger to propel the price in a specific direction.
Throughout these moments of consolidation, the market’s volatility and trading volume may fall as traders become less active.
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