Cardano: How Whaling Losses Are Making ADA a Strong Contender

The crypto market has just wrapped up another interesting week that had a bearish start, followed by a mid-week rally. Cardano ADA moved along with the market, but his recovery was not enthusiastic and he failed to reach his previous levels.

ADA bottomed out at $0.40 after retesting its short-term descending support line. It rallied about 13% to its July 17 price of $0.455.

However, this price represented a weekly drop of more than 2%. Therefore, the price did not do much for the rally. Do not forget that ADA has a reputation for being bearish, while bulls favor other major coins.

Source: TradingView

The coin performed relatively weakly in the last seven days at press time. There was some accumulation that supported the rally after July 13.

At press time, the IMF mirrored this observation, but the bulls were not strong enough to push the RSI above the 50% level.

The lack of enough upside potential suggests that ADA did not have enough volumes to sustain higher prices.

This goes hand in hand with the decline of social dominance. Hence less interest in ADA as attention shifted elsewhere.

Source: Sentiment

Additionally, whale activity remained within the normal range. But there was a substantial increase in daily active addresses. They increased by more than 50,000 addresses in the last 24 hours at press time.

This means that most of them were retail addresses, so they had no effect on the price.

Source: Sentiment

The increase in the number of addresses could be a mixed bag, especially if we look at the distribution of ADA supplies.

Addresses holding between 100,000 and 10 million ADA have reduced their balances substantially in the last three days.

Meanwhile, addresses holding 10,000 and 100,000, as well as those holding more than 10 million ADA, were added to their balances during the same period.

Source: Sentiment

Looking at supply balances reveals that some whales have been buying while others have been selling.

The major addresses that cut their balances provided the selling pressure that diluted most of the upside pressure, hence the dovish result.

Overall, ADA’s most recent price action reflects the lack of a catalyst to encourage consensus among major directions or whales. However, it is worth noting that whatever selling pressure ADA experienced recently was not strong enough to push out of the May lows.

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