This could be a downside sign for Cardano (ADA)

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

In a tweet, the company said that the Cardano giants, which took timely profits last summer, have been buying large amounts of ADA in recent weeks.

“Cardano Shark addresses with 10,000 to 100,000 ADA have a pretty good precedent for predicting spikes. In the last 5 weeks, these addresses have added approximately 6% of the total ADA supply.”

Source: SantimentFeed

The data company goes even further to discuss the impact of negative funding rates on potential future price movements.

“Typically, a negative funding rate is a promising sign that the crowd expects lower prices. This often results in brief liquidations that can push the price higher. Needless to say, this negative funding rate is a great sign.”

To conclude the analysis, Santiment looks at historical activity of whales with trades greater than $100,000 to estimate when ADA could return to all-time highs.

“We are seeing large clusters of whale trading happening at local peaks throughout May and all-time highs in September.

Take this increase in trades as a good sign that ADA will change direction over the long term.”

Source: Santiment Insights

At the time of writing, ADA is down more than 1% in 24 hours and is trading at $0.84.

The 8th-ranked cryptocurrency saw some buoyant price action in the first two months of 2022, rallying from the $1.30 range as high as $1.59 in mid-January before falling to a weekly low of $0.75.

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