Cardano (ADA) price is currently showing signs of a potential consolidation phase as large transactions have surged and then stabilized over the past few weeks.
At the end of September, ADA saw a significant spike in large on-chain transactions exceeding $100,000. On September 26, ADA reached a monthly high of 5,070 large transactions. These transactions are crucial for understanding market behavior, especially as they often involve institutional investors.
The increase in ADA's large transactions coincided with a positive price movement, where ADA's price surged to over $0.40 between September 26 and September 27. This correlation suggests that the influx of high-value transactions contributed to growing market interest in ADA.
However, after this peak, the number of large transactions steadily declined, dropping to 2,300 on October 6 and slightly recovering to 3,000 by October 7. This decrease could indicate a cooling-off period, as market participants await new developments or clearer signals.
Between September 6 and September 22, ADA whales reduced their holdings, with the number of addresses holding between 10 million and 100 million ADA dropping from 405 to 388. Since September 22, the number of addresses holding between 1 million and 100 million ADA has become relatively stable.
Currently, 2,443 addresses hold between 1 million and 10 million ADA, while 391 addresses hold between 10 million and 100 million ADA, indicating little change in their positions. This stability suggests that ADA whales are in a wait-and-see mode, assessing market conditions before taking action.
ADA’s price chart shows a mild downtrend, though it is not particularly strong. The EMA lines are close together, indicating a consolidation phase around the $0.34 level. If ADA breaks below the key support level at $0.34, it could test the next major support at $0.27.
A move up to $0.41 would represent a potential 20% gain from its current price, appealing to traders if bullish momentum builds. The market is currently awaiting clearer signals before establishing a stronger trend.
