Cardano price consolidates amid stable whale activity

Cardano (CRYPTO:ADA) is currently showing signs of potential consolidation as its price stabilizes around $0.34, following fluctuations in large transactions and whale activity. 

In late September, ADA saw a spike in large on-chain transactions exceeding $100,000, which then steadily declined, indicating that the market may be entering a cooling period.

On September 26, ADA recorded a peak of 5,070 large transactions. 

These significant transactions, often driven by institutional investors or major market participants, tend to impact market trends. 

The increase in large transactions coincided with a rise in ADA’s price, which briefly crossed the $0.40 mark between September 26 and 27. 

However, after reaching this high, the number of large transactions declined, dropping to 2,300 by October 6, before slightly recovering to 3,000 on October 7. 

This reduction in transaction activity suggests that traders may be in a holding pattern, waiting for clearer market signals before making further moves.

According to data from IntoTheBlock, whale activity has also stabilized since late September. 

The number of ADA addresses holding between 10 million and 100 million ADA has remained steady, with little change in holdings. 

This stability indicates that large investors are taking a cautious approach, likely waiting for more decisive market movements before buying or selling.

According to technical analysis, ADA’s price has broken a key support level at $0.34. 

The closeness of its Exponential Moving Average (EMA) lines suggests a lack of strong momentum, reinforcing the idea that ADA is consolidating. 

If the price continues to decline, ADA could test the next major support at $0.27. 

However, if bullish momentum returns, ADA could challenge resistance at $0.36, with the potential to rise to $0.41.

This period of consolidation and stable whale activity suggests that market participants are awaiting clearer signals before making significant moves. 

ADA’s next steps will likely depend on broader market trends and investor sentiment.

At the time of writing, the Cardano price was $0.3446.