Cardano (ADA) could turn bearish again after the 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 start moving coins
In the report posted by the on-chain data tracker on .
Most of this activity could be detrimental to the current ADA recovery as these large holders have moved their previously dormant coins. The Santiment report shows that old ADA coins are coming back into circulation.
Source: Santiment on X
It showed that crypto just marked the biggest day of old coin moves. The last time this metric was this high, as indicated by the tracker, was in April 2022, and historical performance does not mean good news after this.
ADA price loses footing at $3 | Source: ADAUSD on Tradingview.com
What happened to the ADA award last time?
When a similar amount of old coins came back into circulation in April 2022, it spelled doom for the ADA price. Looking at the 2022 chart, it appears that ADA had ended the month of March strong at a price of $1.21. But once these coins started moving, the game was over.
In April 2022, the ADA price dropped from $1.21 to $0.8 before the month was over, marking a 33% price drop. The downward trend would continue into the latter part of the year and by December 2022, the ADA price had fallen to $0.24.
If this were to repeat, a further 30% decline would push the ADA price below $0.1 over the next month. This would bring the price back to September 2020 levels. However, it is not all bad news for the digital asset, given the activity of sharks and whales.
In the same report, Sentiment revealed that Cardano sharks and whales have been rapidly buying up ADA. They had purchased a total of $43.71 million in ADA in two weeks, which is now worth more than $131 million at today’s price. This suggests that bearish sentiment is limited as major addresses are still accumulating coins.
At this rate, whatever is dumped into the open market by the dormant wallets will be snapped up by the sharks and whales. As long as demand continues to match supply, the sell-off could have an almost negligible effect on ADA’s price.
