Cardano’s problems do not appear to be going away anytime soon. As the market approached the second quarter, more investors and money were expected to flock to the altcoin, which had been rallying since March.
However, the start of the second quarter swung in the opposite way, as Cardano has lost about 30% of its value since the beginning of April, invalidating more than three-quarters of the rally.
While investors were not anticipating this, some other cohorts were. Whales that became active around the time the rally started, in February and March, can be attributed to a coincidence. This time, though, it was not a coincidence.
Whale Action
Whales had already began withdrawing from the market before the price consolidation on March 26th could occur.
Whale activity had dropped to half of its former level by the time actual price decreases struck Cardano on April 5th.
As ADA declined more, whales’ slowdown accelerated, and volume collapsed by $29 billion in a single day.
Although they did not cause the price drop, their leaving did not aid ordinary investors because they failed to recognise the indications, and as a result, over 1.2 million ADA holders lost money.
As a result, many lost faith and pulled out completely, resulting in an 80 percent decline in the number of on-chain active investors from 101k to 21k.
Fortunately, no investors have pulled out of the market yet, indicating that they are still holding on to their coins in the hopes of a rebound in the coming weeks.
Regardless, it appears that investors are viewing the 7.4% loss in the last 24 hours as an opportunity to profit by buying the dip.
This is demonstrated by on-chain orders, which show a strong demand for the altcoin, with 3.77 million ADA worth $3.3 million being purchased at present pricing.
Furthermore, there is a desire for another 17.15 million ADA at $0.657, which will not happen anytime soon because Cardano would have to plummet another 23%.
