Cardano Tumbles 10% On The Week As Grayscale Dumps Its Holdings

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:

#Cardano is experiencing a lull in whale activity, signaling potential for further $ADA price consolidation or an impending drop. pic.twitter.com/EXPafRamLB

— Ali (@ali_charts) April 5, 2024

Also Read: Longtime Dogecoin-Bull Says He’s A ‘Big Fan’ Of ADA And It Didn’t Happen Overnight: ‘You Either Love Cardano Or Not’

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

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