Cardano (ADA) price is currently showing signs of a potential consolidation phase as large transactions have surged and then stabilized over the past few weeks.

In the end of September, ADA saw a significant spike in large on-chain transactions exceeding $100,000. However, after this peak, large transactions steadily declined, signaling that major market participants may be cooling off their activity.

ADA Large Transactions Shows a Consolidation Phase

On September 26, ADA witnessed a significant spike in its number of large transactions, reaching a monthly high of 5,070. Large transactions refer to on-chain transfers with a value exceeding $100,000, and monitoring these transactions is essential for understanding market behavior, especially as they often involve institutional investors or major market participants.

These larger players can significantly impact price movements, and their activity provides key insights into market trends and liquidity. The increase in ADA’s large transactions on September 26 coincided with a positive price movement, where ADA’s price surged, reaching over $0.40 between September 26 and September 27.

This correlation suggests that the influx of high-value transactions may have contributed to or reflected a growing market interest in ADA during that period.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

However, after this peak, the number of large transactions started to decline steadily, dropping to 2,300 on October 6 and slightly recovering to 3,000 by October 7. This decrease in high-value on-chain activity could indicate a cooling-off period.

Without strong large-scale transaction activity, ADA might not be in a clear Go to Source to See Full Article
Author: Tiago Amaral