Cardano (ADA) Sees Whale Outflows: Why Are Big Players Leaving?

Tue, 26/03/2024 – 14:25

Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Cardano’s ecosystem has recently witnessed a notable outflow of ADA held by large-scale investors. While ADA’s market performance is not really affected, things that are happening in the background might affect it directly. 


Cardano’s price action displays a positive technical outlook as ADA recently ascended above its 21-day Exponential Moving Average (EMA). This technical milestone is often seen as a bullish indicator, suggesting that momentum may be building for further upside movement. The breakout above this particular EMA underscores that the rally is not just sustaining its energy but is, in fact, gaining more strength.

ADA/USD Chart by TradingView

Turning to the second screenshot, it presents data on the number of large transactions juxtaposed with the price of ADA. Historically, a high number of large transactions can correlate with increased activity from whales either accumulating or distributing their holdings. 

A declining trend in large transactions, while the price remains somewhat stable or increases, could imply that whales are either distributing their holdings in anticipation of a short-term top or merely rebalancing their portfolios.

Additionally, the chart showcases large transaction volume, which has seen a decline in tandem with the number of large transactions. This decrease in volume might indicate that while the whales are still active, they are executing fewer large-scale transfers, which could suggest a consolidation phase or a temporary reduction in significant market activity.

However, the decrease in whale activity does not necessarily signify a mass exodus from ADA. Whale movements are not always indicative of a loss of faith in the asset’s potential. Redistribution or a strategic repositioning can always be a reason behind a relative exodus of assets. But it is not necessarily a bad thing or something that would directly affect the asset’s market performance.


Leave a Comment