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Cardano (ADA), the ninth largest cryptocurrency by market cap, has dipped below the $1 mark amid a broad market sell-off, which triggered $788 million in liquidations across various crypto assets in the last 24 hours. However, on-chain data suggests that whales may be seizing the opportunity to accumulate.
According to on-chain analytics firm IntoTheBlock, Cardano’s large transaction volume — often indicative of whale activity — has seen a slight uptick in the last 24 hours. This is in stark contrast to the general decline in large transaction volumes across major cryptocurrencies like Bitcoin, Ethereum and others amid the current market sell-off.
According to IntoTheBlock, large transaction volumes for Cardano came in at $14.22 billion, or 14.04 billion ADA, representing a 2.8% increase in the last 24 hours.
Cardano fell to a low of $0.917 on Thursday, part of a four-day decline that accelerated in yesterday's session. The Federal Reserve, on Wednesday, lowered its key interest rate by a quarter percentage point, the third in a row, but warned against more cuts in the coming years.
While the immediate price action might seem discouraging for ADA holders, the uptick in whale activity offers a ray of hope. If an accumulation trend is confirmed, it could pave the way for a price rebound when market conditions improve.
Cardano price action
Cardano saw profit-taking at highs of $1.12 on Dec. 16. At the time of writing, ADA was down 7.22% in the last 24 hours to $0.939 and down 17.19% in the last seven days. If today closes in the red, it will be ADA's fourth consecutive day of losses.
The daily RSI is close to the midpoint, implying that price movement may be range-bound in the near term. Bears might attempt to pull the ADA price close to the daily SMA 50 at $0.845, which is expected to perform as solid support.
The bulls might take control again after propelling and sustaining the ADA price above $1.20. ADA might increase to $1.24 and then to $1.33, where the bears are expected to stage a robust defense.
For the time being, Cardano's return above $1 might be determined by investor sentiment and the overall crypto market recovery.