Cardano (ADA) has been among the most hardly hit digital currencies during the latest market crackdown. So far, this digital currency has lost more than 60% of its all-time high, keeping the majority of its investors at the loss. The Cardano price drop has been a cause for alarm among the investors. But it seems like everyone has the same feelings that mostly the whales have taken this as a chance to raise their holdings. Let us see why Cardano prices plummeted this week and also some Cardano price news.
Cardano Price Drop: What Happened?
The digital currency space is getting hit with another big week of sale off and the token of Cardano, ADA has been caught up in the negative market shifts. The digital currency was down by 11.2 percent over the last week of trading according to some data. At the time of writing, Cardano price in India is 85.50 INR.
Only a few top 50 largest digital currencies managed to end last week of trading in the green, and most cryptos were down by double digits in a stretch. Along with that, to the specter of increasing regulatory risks, the digital currency market is also facing bearish trends that are related to the potential disparity between Russia and Ukraine, altering the macroeconomic conditions and disappointing evaluation from some specific companies that are dependent on growth.
Whale Fills Up On ADA
A report portrays a wide accumulation trend among whales when it comes to Cardano price drop. As the value of this cryptocurrency has crumbled, huge investors have ramped up their purchasing activity. One would consider that with relevant loss of value as recorded by the digital currency, whales who have big holdings would dump their baskets to save themselves from future losses.
Rather, these whales are taking this as a purchasing opportunity. The report illustrates that the top Cardano whales have all increased their holdings to double in the last 10 days. In this time span, there was about a 34% of Cardano price drop. The holdings in the wallets of the Whales between 10,000 and 1 million ADA have at least doubled their last holdings since then.
In total, these whales have cumulatively purchased more than $53 million worth of ADA in a 10-day span. The approx addition to their holdings comes out to nearly 113%, which is more than doubling the volume of ADA they dominate.
Holders Of ADA In Red Because Of Cardano Price Drop
Most holders of ADA stay firmly in the red, as portrayed by several data. The virtual asset presently features one of the lowest rates of profit of all the top digital currencies with only 9 percent of holders noted to be in profit. A whopping 84 percent of all Cardano investors prevailed to struggle as their holdings are remaining firmly in loss, while only 7 percent are holding on in the neutral territory.
The digital currency had managed to attain a high above $3 in a magnificent rally the previous year. However, it has been a sad instance of dips and crashes since then that has come down to about $2 off of its all-time high price. Presently, this crypto is still struggling in the digital currency space.
The purchase from Cardano whales has functioned to the good for the asset but it is too early to tell how long the stop-gap will stay like this and for how long will this Cardano price drop prevail. If whales prevail in their accumulation trend, and smaller investors abide by the footsteps of the whales, then a reversal could very well take place soon. However, with the sentiment of the market firmly in the bearish arena, investors may be too cautious to gamble on the smart contracts network.
Frequently Asked Questions On Cardano Price Drop
1. Why is Cardano price dropping?
A report portrays a wide accumulation trend among whales when it comes to Cardano price drop. As the value of this cryptocurrency has crumbled, huge investors have ramped up their purchasing activity.
2. Will Cardano price go down?
The purchase from Cardano whales has functioned to the good for the asset but it is too early to tell how long the stop-gap will stay like this. If whales prevail in their accumulation trend, and smaller investors abide the footsteps of the whales, then a reversal could very well take place soon.
3. Does Cardano have a future?
The value of Cardano will rise in the future years as it receives mass usage. Even though it is unclear whether the market cap of ADA will increase much, one thing is certain: the expected price increase. Due to various Cardano price predictions 2022, the price of Cardano is predicted to rise this year.