- Cardano continues to struggle to make it past the $0.30 level in the market. In fact, the price continues to wobble around the $0.29 range.
- However, a new development emerged from on-chain data. Apparently, many Cardano whales cashed out of the token within the first week of August. The total amount of Cardano withdrawn was more than 100 million ADA tokens.
Cardano is having a purple patch in the crypto market every now and then. However, new on-chain data shows a huge withdrawing phase within the first week of August. Whales withdrew more than 100 million ADA tokens within the same period. Apparently, this is concerning as withdrawing tokens in such massive amounts shows fear in the market. Is Cardano in trouble, or is it just a coincidence?
Outlook of the Cardano Token
On August 8th, Cardano saw some strings of bullish trends, which saw the token move some inches toward the $0.30 level. However, it is still below the $0.30 level and is hovering around $0.29, waiting for the next push. According to the Q2 report for Cardano, there’s an increased network activity. Thus, some bullish trends happened, and whales took the opportunity to withdraw as many tokens as possible.
After the XRP court ruling, the ADA token continued to decrease in price. Apparently, whales cashed out on the token and continued doing so even in the first week of August. The details behind this recent whale activity might prove negative for the Cardano network. Moreover, the price charts look risky already, except for the recent strings of bullish trends.
Whales Withdraw More Than $30 Million Cardano Tokens
A newly retrieved on-chain data shows a primary reason for the bearish market outlook for the ADA token. Apparently, Cardano whales holding balances of 10 million to 100 million coins added more bearish pressure to the token. They sold massive amounts of ADA tokens within the first week of August.
From the on-chain data, the wallets holding the Whales ADA tokens had 12.27 billion ADA in their cumulative wallet balances at the end of July. Then 7 days into August, the new balance on the wallet shows a massive amount of tokens weren’t there anymore. Hence, analysts came to the conclusion that about 100 million ADA tokens were sold off to bring the wallet balance to 12.17 billion.
ADA Token Price Decline Despite Increase in Transaction Volume
Before the little bullish trend at the end of 8th August, the ADA token was a shadow of itself days after the XRP ruling died down. However, their Q2 report shows positive signs, and there are chances the token will bounce back even stronger.
In conclusion, the ADA token didn’t have it easy within the first week of August. Apparently, some whales in the network decided the first week of August to be the time to sell. Furthermore, they sold more than 100 million ADA tokens worth around $30 million. While the move affected ADA price, it is quietly recovering with some bullish trends.
