Cardano (ADA) Whales Seek to Reduce Exposure as Last Month\'s Market Decline Impacts Price

Last month's general market decline has impacted Cardano's (ADA) price. It trades at $0.37, having witnessed an 18% price decline in the past 30 days.

Cardano’s (ADA) price has seen a significant decline in the past 30 days, dropping by 18% and currently trading at $0.37. This price dip has impacted the trading activity of Cardano’s biggest holders.

According to data, there has been a decrease in the daily count of ADA transactions valued between $1 million and $10 million, showing a 33% decline. Furthermore, the daily count of transactions valued at $10 million or more has also dropped by 24% in the last 30 days.

When an asset experiences a decline in large transaction volume, it indicates a decrease in the number of big trades for that asset. This typically occurs when investors are hesitant to trade the asset, which can be influenced by various factors.

One significant factor is a shift in market sentiment from positive to negative, which can be observed by analyzing ADA’s weighted sentiment. At the time of writing, the metric is valued at -0.58.

An asset’s weighted sentiment tracks the positive and negative mentions of an asset on social media platforms. When its value is less than zero, it indicates a general feeling of negativity among those discussing the asset.

Typically, a negative weighted sentiment precedes a continued decline in an asset’s value. This occurs because investors may hesitate to trade the asset, leading to decreased demand and a subsequent price drop.

Examining ADA’s price on a daily chart reveals that some of the coin’s key technical indicators suggest a decline in demand. For instance, the Relative Strength Index (RSI) has fallen below the 50-neutral line, indicating selling pressure.

At the time of writing, ADA’s RSI is valued at 34.12 and is decreasing. This indicator measures an asset’s overbought and oversold market conditions. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and likely to decline, while values below 30 suggest that the asset is oversold and may experience a rebound.

At 34.12, ADA’s RSI suggests that the coin’s selling pressure is outpacing its buying activity.

Moreover, the Directional Movement Index (DMI) shows that increased selling activity has put the bears in control of the market since June 12. This indicator measures the strength of an asset’s price.

At the time of writing, the positive index (blue) rests below the negative index (red). When this indicator is set up this way, it is a bearish sign that confirms that selling pressure is significant.

If ADA sell-offs continue to amplify, we may see the coin’s value dip to $0.35.

However, if sentiment shifts from negative to positive, the spike in buying pressure can propel ADA’s value to climb to $0.41.

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