Metric analysis

Cardano (ADA) lower signal? Insights Firm Santiment Eyes Metric with Top and Bottom Call Record

Crypto analytics firm Santiment says recent moves by big players could be a bullish indicator for the scalable decentralized blockchain platform Cardano (ADA).

In a tweet, the firm said that deep-pocketed Cardano investors who took well-timed profits last summer have been loading their bags with massive amounts of ADA in recent weeks.

“Cardano shark addresses holding 10,000-100,000 ADA have historically done a pretty stellar job of calling the highs.

And over the past 5 weeks, these addresses have added about 6% more to the overall ADA supply.

Source: SantimentFeed/Twitter

The data company goes one step further on its website by to discuss the impact of negative funding rates on potential future price action.

“Generally, these negative funding rates are a promising sign that the crowd expects prices to go down. And that very often leads to short sell-offs which can propel prices higher.

It goes without saying that these negative funding rates bode well. »

Santiment concludes its ADA analysis by looking at historic whale activity with trades above $100,000 to gauge when Cardano might return to all-time highs.

“We see that the major groups of whale trades both occurred at the local high in May and at their all-time high in September.

Look for a slight increase in these transactions as a great alpha that Cardano will see a long-term turnaround.

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Source: Santiment Prospects

At the time of writing, Cardano is down 1.82% and trading at $0.87.

The 7th-ranked crypto asset saw choppy price action in the first two months of 2022, rising from the $1.30 range to $1.59 in mid-January before falling to $0.82 last Monday.

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Feature image: Shutterstock/Tithi Luadthong