Cardano‘s ADA/USD muted performance throughout this bull run has analysts wondering whether the lull in activity may precede consolidation or a price drop.
What Happened: Grayscale Digital Large Cap Fund announced the liquidation of all its ADA holdings, as per a press statement. Currently, the fund boasts $579 million in assets under management, and it had 1.62% of its portfolio, worth $9.4 million, in Cardano.
Instead, the fund added Avalanche AVAX/USD and Ripple XRP/USD to its portfolio. The final composition of the fund as of April 3, 2024, includes Bitcoin (70.96%), Ethereum (21.84%), Solana (4.52%), XRP (1.73%) and Avalanche (0.95%).
Crypto chart analyst Ali Charts predicts a price consolidation or an impending drop following Cardano’s lull in activity:
Why It Matters: IntoTheBlock data reveals a 6.6% increase in daily active addresses, reaching 38,400, while large transaction volumes saw a 6.1% decrease to 16.4 billion. As of April 4, there were 606 transactions exceeding 100,000, up from 569 on April 3.
A significant portion of Cardano holders, 67%, have held their tokens for more than a year, while 27% have held them for between one and 12 months. Despite a 12% price drop, 48% of Cardano holders remain profitable, while 49% are currently out of profit.
According to a weekly development report by Essential Cardano, the project has reached a significant milestone, completing 88.6 million transactions. The report also highlights 164 launched projects, 1,353 projects under development, and over 9.86 million native tokens.
What’s Next: In contrast to the prevailing market sentiment surrounding Cardano, popular chart analyst Trend Rider maintains that the token is a long-term investment that has demonstrated its strength through two bull runs, each resulting in a 100x increase.
He notes that while Cardano’s bullish movements can be extremely explosive, its movements can also be equally slow.
The appeal of altcoins for investments is a topic expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: ‘Cardano Is Dog S**t’: BitMex Co-Founder Arthur Hayes Challenges ADA’s DApp Utility
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
