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Recent analytical insights from JB, a crypto analyst from the Cheeky Crypto YouTube channel, suggest that Cardano (ADA) one of the leading altcoins in the crypto market might face a plunge before any potential resurgence.
According to JB’s analysis, Cardano is possibly on the brink of a price dip. Following the cryptocurrency’s recent pullback, which was exacerbated by the unfounded news about a Bitcoin ETF approval, JB predicts ADA’s price could slide to a range between $0.2296 and $0.2185 before any possible upward reversal.
JB further emphasized the broader crypto market’s sentiment, referencing the Fear and Greed index, which recently stood at 47 – a nearly neutral position.
Interestingly, as highlighted by JB, this metric diverges from market expectations, as many assumed a more fearful sentiment following the unsubstantiated ETF news.
Furthermore, to get a clearer picture of ADA’s potential trajectory, the analyst touched on fundamental factors concerning Cardano. Within the 24 hours leading to JB’s analysis, there were 38,256 active ADA addresses on the Cardano blockchain.
Of these, 31,330 were receiving addresses, while 27,599 were sending. Moreover, during this period, ADA witnessed 55,893 transactions which accrued fees equivalent to 19,908 ADA or approximately $4,841.
Another interesting observation was the addition of 4,086 blocks to the Cardano blockchain, pushing the block height past 9.434 million. When examining ADA’s holders, JB noted a 0.16% weekly increase in wallets possessing up to 10,000 ADA.
This growth expanded to 0.55% over the past month. Conversely, wallets holding over 1,000 ADA experienced a 0.2% increase in the last week and a 0.08% rise over the month.
Another revelation by the analyst that caught attention was the plummeting number of wallets holding up to 1 million ADA. This segment saw a reduction from 2,789 to 2,773. This could insinuate that ADA whales might be partaking in a sell-off strategy.
According to JB, their rationale could be to drive the price downwards, enabling them to repurchase ADA at more favorable rates, and setting the stage for more significant profit margins in the future.
Regardless of the analysis, ADA has experienced a notable increase in its price over the past week and has maintained a bullish trend in the last 24 hours, rising by 2.2% to a trading price of $0.251, at the time of writing.
In addition, the altcoin’s trading volume has also appreciated significantly in the past week. Particularly, ADA’s daily trading volume has surged from below $95,000 recorded this last Friday to as high as above $150,000, in the last 24 hours.
Featured image from Unsplash, Chart from TradingView