- On 5th June, ADA whale activities increased.
- It caused the price to briefly rise.
Cardano [ADA] According to a report by Investopedia, the 5th of June saw an increase in whale activity that led to a short surge in price. Santiment’s data.
According to data from the provider of on-chain data, there were 309 ADA transaction valued at more than $1 million on this day. It was the highest number of transactions for an altcoin in a single day since 30th April.
ADA also recorded 2106 transactions valued at more than $100,000 in the same day. Santiment data showed that the average number of ADA transactions above $100,000 doubled from 2024 to this week.
ADA Bears continues to dominate the market
During the period of trading, ADA’s price briefly rose due to a surge in whale activity. Santiment reports that ADA finished the day trading at $0.46.
But according to CoinMarketCap The coin’s value has dropped since then. At the time of publication, it was trading at $0.45.
The key indicators of ADA’s momentum showed that its selling pressure was greater than any positive bias towards it. At the time this article was written, for example, ADA’s Relative Strength Index and Money Flow Index were both 48.32.
These values suggest that participants in the market prefer to accumulate coins than sell them.
ADA’s decreasing Chaikin Money Flow confirmed this increase in sales pressure. As of press time it was moving downwards and below zero at a value of -0.07.
The indicator shows how much money is flowing into or out of the market for a coin. Its negative value indicates a weak market, because it signifies capital flight away from the market of an asset.
The bears are still more influential than the whales, even though the former may have been able to trigger a short rally of ADA.
Directional Movement Index readings for altcoins showed the positive directional indicator (green) positioned below its negative index.
This arrangement shows that bears are stronger than bulls in the markets.
ADA traders are still bullish despite the small chance of a significant spike in price. Coin funding rates on cryptocurrency exchanges have remained positive.
Click Here to Read Cardano’s [ADA] Price Prediction 2023-24
In perpetual futures, funding rates are applied to keep the price of the contract close to spot.
A positive futures-funding rate for an asset is considered a bullish sign. The positive futures funding rate indicates that more traders want to hold long positions because they expect the price of the asset to rise.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com