Cardano’s value has declined by double digits over the past week. It currently trades at $1.04, recording an 11% price drop during that period. 

Apart from the general decline in trading activity in the broader cryptocurrency market, the ADA coin price drop is attributed to a dramatic decrease in holding time and a surge in selling activity from large investors or whales.

Cardano’s Holding Time Drops and Large Holders Scale Back

BeInCrypto’s analysis of Cardano’s on-chain activity reveals a sharp decline in the holding time of transacted coins over the past week. According to IntoTheBlock’s data, this metric has plunged by 48% during the period under review.

An asset’s holding time measures the average duration its tokens are held in wallets before being sold or transferred. When this metric declines, it suggests increased selling pressure among market participants.

This often signals waning confidence or a shift in market sentiment toward the asset. Therefore, the drop in ADA holding time among its investors puts it at risk of extending its price decline in the short term.

Further, ADA whales have significantly reduced their coin accumulation during the week in review, as reflected by the 134% decline in large holders’ netflow recorded within that time. 

Large holders refer to addresses that hold over 0.1% of an asset’s circulating supply. Their netflow measures the difference between the coins they buy and sell over a specific period. 

A decline in an asset’s large holders’ netflow indicates that major investors or whales are reducing their i

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Author: Abiodun Oladokun