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Cardano’s rally has slowed as on-chain data shows large addresses have distributed cryptocurrency in recent days.
Cardano Addresses With 1 Million To 100 Million ADA Have Been Selling Recently
According to an analyst at Twitter, a total of 31 addresses holding large amounts of Cardano have sold their coins recently. The relevant indicator here is on-chain analytics firm Santiment’s “ADA Supply Distribution,” which tells us (among other things) which wallet group includes how many current addresses.
The “wallet group” here defines the range between the number of coins held by their wallet. For example, the 100-1000 coin group includes all addresses holding at least 100 and at most 1000 current ADAs.
If the Supply Distribution metric is applied to this group, it will measure the total number of wallets on the network that currently meet this condition.
The interesting wallet group here is the 1 million to 100 million coin group. At current prices, the lower end of this range converts to around $380,000, while the upper end is worth around $38 million.
Since these numbers are so large, the types of investors whose wallets fall into this range are whales and sharks.
Now here’s a graph showing the Cardano Supply Distribution trend for this wallet group over the past month:
Looks like the value of the metric has been trending down in recent days | Source: Ali on Twitter
As shown in the chart above, the number of Cardano addresses belonging to the 1 million to 100 million coin pool increased at the start of the month. During this period, ADA started its sharp rally and prices continued to increase as the addresses of this cohort also rose.
Whales and sharks (the owners of these wallets, as mentioned before) are important groups in the market because their movements can have a real impact on prices. The pattern seen earlier in the month would suggest that it was the buying from the whales and sharks that provided fuel for the crypto price’s rally.
However, in the last nine days or so, the indicator’s value has reversed its trend and instead gone down. This means that some investors who are in the 1 million to 100 million ADA range have sold their coins recently.
Since this decline began, this cohort has lost a total of 31 addresses so far. Cardano prices also seem to have slowed down recently, which may be due to the distribution of these whales and sharks.
For now, overall ADA is still up, but if these investors continue to sell off their supply, then the crypto could take a bearish turn.
ADA Price
At the time of writing, Cardano is trading around $0.38, up 2% in the last week.
The value of the crypto seems to have been trading sideways in the last few days | Source: ADAUSD on TradingView
Featured image by Michael Förtsch on Unsplash.com, chart by TradingView.com, Santiment.net
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