As a seasoned crypto investor with a knack for spotting trends and reading between the lines, I find myself both intrigued and cautious about Cardano (ADA) at this juncture. The absence of Charles Hoskinson and the delayed Chang upgrade have certainly shaken investor confidence, but the underlying network activity paints a different picture.
Cardano (ADA) is facing notable difficulties with its price nearing a possible 10% drop. The trust of investors has been affected due to the reported absence of founder Charles Hoskinson, who last appeared in public and on social media on August 24th. Furthermore, the delay of the Chang upgrade, now set for September 1st, has contributed to a less optimistic market outlook.
1. In the past 24 hours, the price of ADA has decreased by 1.5%, with the community anxiously looking forward to a favorable market response when the upgrade is launched. At the same time, there are growing comparisons being made to the recent pause in the Ton blockchain due to network overload after the detention and subsequent release of its founder, Pavel Durov, which has added to the rumors circulating around it.
Whale Activity Rising is Good For Cardano Price
Without its founder, Charles Hoskinson, the Cardano network is thriving, with an uptick in both the number of active whale addresses and whale transactions over the past 24 hours.
Over the past four days, Charles Hoskinson, known for his frequent engagement with the X platform, has been noticeably absent. His followers are growing anxious due to this prolonged silence, particularly since the much-anticipated Chang hard fork is just three days away.
Cardano Founder Charles Hoskinson has gone missing.
Last seen four days ago.
— Altcoin Daily (@AltcoinDailyio) August 28, 2024
According to data from Santiment, it’s been observed that the number of ‘whales’ (large investors) holding $100,000 or more of ADA on the Cardano network has consistently grown since August 24. Interestingly, during this same period, the price of ADA saw a decline.
Furthermore, According to IntoTheBlock data, large holders seem to have been accumulating or purchasing Cardano during the period from August 25 to 28, potentially anticipating an upward trend in its price.
Instead, it’s possible that Whales are shifting their investments, transferring funds among different digital wallets or trading platforms for tactical purposes. This activity may not directly influence the ADA price in the short term, but it could be a sign of upcoming market trends.
Active Addresses Skyrocket, But ADA Price Tanks
In contrast to a drop in the price of Cardano’s native currency (ADA), there has been a significant increase in the number of active addresses on the network, reaching levels almost equivalent to the past month’s high. This surge suggests that activity within the blockchain is intensifying. As reported by Santiment, the number of active addresses on the Cardano network jumped by 49% to approximately 36,184 over the last day, pointing towards growing curiosity or adoption. However, it’s worth noting that ADA transaction volume decreased during this period.
The AA-volume divergence could signal growing interest or adoption, but the decrease in volume could indicate cautious behavior. Users might be holding onto their assets rather than trading them, possibly due to market uncertainty.
According to data from Coinglass, Cardano’s open interest decreased by 0.12% in the past 24 hours, mirroring a drop in price. This suggests that traders might be going short on Cardano. Interestingly, the Coinglass Liquidity Map indicates an increase in short positions over the last 24 hours, although the gap between shorts and longs remains narrow.
The lopsided situation indicates that a predominant pessimism, or “bearish” feeling, is prevalent among market participants, as they expect the value of Cardano to decline further. This could also account for the tentative actions displayed by new users, as suggested by the discrepancy in AA-volume.
The Cardano price remains bullish, with the key support level around $0.32 still holding firm. Whale activity increased, showing that large investors are confident that the price of ADA will increase. The Cardano price may drop by 10% to test this support level before bouncing back to $0.39.
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2024-08-29 06:10