Cardano whales trade a whopping $13B on average daily, yet prices…

• The past few months have seen a rally in ADA whale activity.
• However, demand for ADA has continued to plummet.

Cardano [ADA] has seen a surge in whale activity in the past few months. In a 18th January post on X (formerly Twitter), on-chain data provider IntoTheBlock noted that ADA averages $13 billion in whale transactions daily. 

Cardano whales have been quite active for the past few months. $13B in large transactions (>$100k) is being settled on Cardano daily on average. A significant amount, if you compare it to Ethereum’s $5B 7-day average. pic.twitter.com/8rjeQZaonU

— IntoTheBlock (@intotheblock) January 18, 2024

This was 160% more than Ethereum’s [ETH] daily whale transaction volume of $5 billion, the data provider added.

Price sings another tune

Despite the flurry of whale activity, ADA’s price has refused to budge significantly. Exchanging hands at $0.49 at press time, the alt’s value has dwindled by 19% in the last month.

In the last week alone, ADA’s price has dropped by 15%, data from CoinMarketCap showed.

Source: CoinMarketCap

At its current value, ADA has returned to its pre-ETF approval price level. Due to the general altcoin market rally that followed Bitcoin Spot ETF approval on 10th January, ADA’s price quickly rallied to a high of $0.61 by 11t January, jumping by 21%. 

However, as the excitement around the ETF approval waned, ADA’s uptick, backed by no real demand for the coin, initiated a reversal. ADA’s price has fallen by 20% since 11th January.

A clear indication of the decline in demand for ADA was its key momentum indicators observed on a 24-hour chart. At press time, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were pegged below their respective center lines.

ADA’s RSI was in a downtrend at 41.11, while its MFI was 48.53. At these values, these indicators showed that coin sell-offs outpaced accumulation.

Signaling increased liquidity exit from ADA’s spot market, its Chaikin Money Flow (CMF) was -0.04 at press time.

A CMF value below zero is a sign of weakness in the market as it depicts capital removal. This has been known to put downward pressure on an asset’s price. 

Source TradingView

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Due to ADA’s low price action since the year began, its Market Value to Realized Value (MVRV) ratio has been negative since 4th January. This means that most ADA investors hold their coins at unrealized losses.  

At an MVRV ratio of -11.77% at press time, any trader who sells their coins at its current price would, on average, record a 12% loss on investment. 

Source: Santiment