The price of Bitcoin is unexpectedly struggling to surpass the $30,000 level at the time of writing this article. However, things are complicated for one of the largest cryptocurrencies. On-chain signals indicate that there is a greater risk of further decline. So, what is the reason behind this whale exodus?
Cardano (ADA) Review
While Cardano continues its turbulent start to August 2023, the price of ADA dropped below $0.29 on Tuesday. The whale group in Cardano, which attracted $30 million last week, expects the price to drop to $0.25. However, as BTC surprisingly tested $30,000 at the time of writing, the price reclaimed the $0.3 region.
Despite the recent increase in transaction volume across the network, ADA has continued its downward movement since the price rally in mid-July. On-chain data analysis highlights whale movements involved in profit-taking. The Santiment chart below shows how ADA transaction volume increased from 7.32 billion to 9.63 billion between July 1 and August 7. However, while ADA transaction volume increased by 32%, the price of Cardano did not experience the expected rise. This negative divergence indicates that bears largely control the market momentum.
Furthermore, it reveals that Cardano whales with balances ranging from 10 million to 100 million coins have increased selling pressure in August. This confirms the negative outlook for ADA Coin price. By the end of July, whales held a cumulative wallet balance of 12.27 billion ADA, which decreased to 12.17 billion by August 7.
ADA Coin Price Prediction
If the overall market sentiment does not significantly turn bullish, ADA Coin price could continue its decline. For now, there is a possibility of a recovery in ADA price as BTC hovers near the $30,000 level. If BTC remains above $29,700, it could test $32,000 in the coming days, and ADA Coin price could establish a new local peak between $0.35 and $0.38.
Recent on-chain measurements indicate that whales expect further downside. If the rise in BTC is also for liquidity hunting, the price will start closing below $0.29. Then we will see it visiting the $0.25 and $0.23 regions.
