Cardano (ADA) is currently experiencing a consolidation phase. After a significant increase in large on-chain transactions exceeding $100,000 in late September, the number has gradually declined, indicating that major market participants may have slowed their activity.
A surge in ADA large transactions on September 26 saw ADA’s price rise over $0.40. The correlation suggests high-value transactions contributed to or mirrored growing interest in ADA at the time.
However, following this peak, the number of such transactions decreased, suggesting a cooling-off period in the market.
As large-scale transaction activity has tapered, ADA hasn’t shown a definitive upward or downward trend. Market participants may be awaiting new developments or signals before making significant moves.
Between September 6 to 22, ADA whales reduced holdings from 405 to 388. Since then, large holders' positions have remained stable, indicating a wait-and-see approach.
The price of ADA shows a mild downtrend, with EMA lines hugging close together, suggesting ADA may be consolidating around $0.34.
A break of key support at $0.34 could lead to a test of $0.27. Conversely, a reversal could aim for new resistance levels at $0.36 and $0.41, offering potential gains for traders.
