Cardano Observed A Sudden Loss Of Wallets Prior To Rally
As explained by Santiment in a on X, ADA witnessed a large number of small wallets clear themselves out last month. The relevant indicator here is the “Supply Distribution,” which keeps track of the total amount of Cardano wallets that belong to the different groups in the market.
The wallets or investors are categorized into these groups based on the number of tokens that they are carrying in their balance. For example, the 1 to 10 coins cohort includes all holders owning at least 1 and at most 10 ADA.
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Looks like both the metrics have observed a large plunge | Source:As displayed in the above graph, both of these Cardano groups observed a plunge in their wallet count back on November 17. In total, the addresses carrying some ADA balance dropped by almost 35,000 on this day. Generally, this kind of mass exit can be a bearish sign for the cryptocurrency, as it indicates a selloff is taking place. However, the finer details about which groups exactly have taken part in such selling can affect the outlook of the asset.
Interestingly, as Santiment has noted, 98.1% of the wallets involved in the aforementioned selloff belonged to the small holders. This would suggest that the larger entities like the sharks and whales only saw a minimal amount of exit during this plunge.
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Since this mass exodus of the small hands, Cardano has rallied around 65%, perhaps suggesting that this pattern may have been one of the contributors behind the surge.
ADA Price
While Cardano kicked off the month with some sustained bullish momentum, the rally has cooled off in the last few days as ADA has observed a notable pullback. Since the $0.648 local top, the asset’s price has come down almost 11% as it now floats around the $0.577 mark.The value of the asset appears to have enjoyed some rapid growth recently | Source:
