Last week, the price of Cardano experienced a significant drop, losing more than 12% of its value due to the general downturn in the cryptocurrency market. This decline coincided with a period where other major altcoins also suffered substantial losses. What levels are expected next for the price of ADA coin?
Reasons Behind Cardano’s (ADA) Price Drop
The recent price drop of Cardano is linked to the Grayscale Digital Large Cap Fund (GDLC) selling off all of its ADA assets. The fund decided to rebalance its portfolio and liquidated approximately 1.6% of its total assets, which were in Cardano, on Thursday, April 4th.
A negative start to April following a weak performance in March is increasing concerns among investors. Moreover, on-chain data suggests that the downward trend in Cardano’s price could continue.
Cardano Whales Less Active
According to cryptocurrency analyst Ali Martinez, there is data indicating that Cardano whales are less active in the market. This observation is based on Santiment’s Whale Transaction Count metric, which tracks ADA transactions worth over one million dollars.
Whales refer to large players who hold significant amounts of a particular cryptocurrency. Their buying or selling activities can influence market balances and have a considerable impact on prices.
According to Ali Martinez, there is a noticeable decrease in the activities of Cardano whales. This suggests a reduction in significant ADA transactions. On the other hand, this development could mean that a decrease in buying activities from large investors could lead to a drop in the cryptocurrency’s price.
What to Expect for ADA Coin?
Cardano (ADA) started the year positively, reaching a high of $0.8 in March. However, after reaching its 2024 peak, the altcoin entered a downtrend influenced by the price drop of Bitcoin. Currently, the price of Cardano is hovering around $0.58, showing a 2% increase over the last 24 hours.
Investors should be cautious about the future price movements of the cryptocurrency Cardano and closely monitor the activities of whales. Another important metric will certainly be Bitcoin‘s price movement. If Bitcoin enters an uptrend, it could signal the start of a journey back to $0.8 for ADA coin.
