Cardano (ADA) experienced a FUND-filled and challenging week recently. The alternative token kick-started uptrends following weeks of restricted performance. Nevertheless, the FUD surrounding the bug discovered on the testnet weighed massively on ADA, plush bearish markets over the previous week.
The mentioned factors saw ADA losing approximately 25% within seven days. Though FUD emerged for some testnet problems, it didn’t affect ADA’s mainnet. The latter awaits the launch of its massive upgrade – Vasil. Nevertheless, delay concerns might have also triggered ADA’s decline.
However, Cardano’s latest fall may switch to be a lucrative opportunity. That’s because it can attract individuals to purchase at discounts, especially following last week’s plunge. Are there more downside chances for the token? Indeed, Cardano’s price move still boasts a downward space before hitting a support level.
While publishing this post, ADA traded at $0.46, following a brief surge within the past two days. The price surge case as relief following the sell-off of last week. Nevertheless, there’re still some worries concerning the token’s next move as market players ponder whether it will attain a bullish revival or resume downside tendencies.
Following Smart Money
Mimicking institutional investors and wales amidst uncertainty is a ‘smart’ approach. Cardano’s whale transfer metrics recorded substantial whale activity within the past two days. About 43 whale transfers worth over $100,000 and more than ten whale transactions worth over $1M early on Saturday.
Meanwhile, whale transactions witnessed a substantial drop over the past day. Nevertheless, the highest transfer over the past two days emerged after Cardano had lost a notal margin. It may be unlogical for whales to trim after prices dipped.
Thus, the recent activity indicated that whales are purchasing the dip. Cardano’s realized loss declined from the lows of -1.3 Million $ADA to -13,988 $ADA at this publication.
That confirmed that the token witnessed massive accumulation following the dip. Also, the enormous hike in Cardano’s stock-flow ratio confirmed the outcome. The latter gained from Saturday’s 8.12 to press time at 145.29. Also, it indicated a scarcity increase. Meanwhile, amplified demand around the press time zone would lead to higher prices.
Moreover, Cardano’s realized cap index indicated that most investors who purchased the dip are yet to see a profit. Furthermore, it emphasized that the market exhibited enough bullish momentum to trigger higher prices.
That shows that ADA is yet to see increased liquidity. Whales are waiting to confirm whether the sell-off ended, but the token trades at its bottom range.