Cardano Sentiment Turns Bearish, But Network Sees Massive 687 Transactions of $1M+

Cardano (ADA) has experienced a slight 2.04% dip to $1.06 as bearish sentiment takes hold, even as whale activity continues to rise.

Despite a recent slowdown after its impressive surge over the past month, ADA retains a generally bullish outlook. The asset is trading at $1.06, showing a 2.04% decline in the past 24 hours, though it has gained 5.54% over the past week.

Decline in Sentiment For Cardano

Amid the cooling momentum, analyst Ali Martinez highlighted a bearish shift in sentiment for Cardano, with the weighted sentiment turning negative to -0.786 as of December 16.

Historically, such overly negative sentiment has been a precursor to price rebounds, indicating potential contrarian opportunities.

Market sentiment for #Cardano $ADA has turned bearish—just the kind of setup bullish contrarians dream of! pic.twitter.com/hg7892ALmH

— Ali (@ali_charts) December 17, 2024

In addition, social mentions for ADA have declined to 206, a notable drop from previous highs. Lower engagement levels suggest waning hype and reduced public interest. Santiment data showed a similar trend in early November, preceding a rally that pushed ADA’s price to $1 on November 22.

Whale Activity and Ownership Trends

Martinez also reported a significant surge in whale activity within the past 24 hours, with 687 transactions exceeding $1 million.

This uptick in large transactions may signal accumulation among major holders, potentially influencing future price trends. Typically, increased whale activity correlates with notable price movements, while lower whale transactions often accompany sideways price action or minor retracements.

Additional data from IntoTheBlock revealed changing ownership dynamics for Cardano. Over the past month, investor concentration increased by 1.74%, indicating growing interest among mid-sized holders often viewed as long-term participants.

Retail ownership rose by 1.19% during the same period, reflecting increasing activity among smaller investors. This trend often coincides with the early stages of bullish momentum and broader market adoption.

However, whale holdings declined by 2.69%, suggesting a potential redistribution of holdings.

Bullish Projections for Cardano

Meanwhile, market commentator Dan Gambardello shared an optimistic outlook for Cardano in the upcoming bull run. He suggested that ADA could reclaim its previous all-time high of $3 and potentially surge to $7.

Gambardello even pointed to a $14 price target, which would require a market cap of $500 billion. He believes this ambitious outlook is achievable within the ongoing market cycle.

Interstingly, Cardano’s historical performance supports such projections. In the previous cycle, ADA rose from its March 2020 low of $0.01913 to a high of $3.161 in September 2021, marking a 164-fold increase. Some proponents believe the $14 target is conservative, given the asset’s past performance.

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