For the past few weeks, Cardano kept the altcoin market and its investors engaged as the asset hit a new all-time high of $ 3.10. However, since it broke above $ 3, Cardano did not demonstrate the same strength, as for the past 7 days, the asset regularly fell on the chart.
Now, as the value of ADA fell along with the collective market crash, the question is whether a period of correction attracts the third-largest digital asset.
A 45-day wait
As seen in the table, Cardano lost the support of the Exponential and Simple Moving Average-20, for the first time since July 21. During the entirety of the rally, the asset did not break below the moving averages, acting as immediate support.
At press time, a huge red candle was observed. It was the first sign of correction for the asset. The reduction in the last 24 hours was $ 2, but there was a quick correction above $ 2.50.
From a profitability standpoint, more than 80% of addresses were making a profit and only 15% were making a loss, as identified in the table below.
With Cardano already reaching $ 2, asking for another floor could be risky. However, the collapse indicated that profit-taking could be in full swing for the next few days.
Between $ 1.70 and $ 2.58, there are over ~ 4.45 billion ADA tokens accumulated by 280k addresses. The median value of these ADA tokens held around $ 2, which may explain the immediate ADA bounce from the $ 2 mark. However, the adjusted transfer volumes were also indicative of a shift that took place just before. of the collapse.
At $ 2.85, did Cardano holders pull the trigger?
Yesterday, just before the accident, it was observed that the average transfer value in Cardano reached a new peak that has not been seen in the whole year. At around $ 2.85, the average transfer value topped $ 0.5 million, indicating that massive investors are on the move.
A few hours later, the market began to decline collectively, leading to the eventual drop to $ 2. From this information, it can be inferred that the ADA drop was not completely coincidental, as investors in whales might as well. have played a role in it. As usual, retail was not ready for the downturn and sell-offs were witnessed across the board. At press time, as the market structure continued to fracture, the dust was beginning to settle, for the time being.
This is a machine translation of our English version.