In the past week, Cardano's value took a notable tumble, losing more than 12% due to the broader cryptocurrency market downturn. This decline mirrored similar drops seen in other major alternative cryptocurrencies. What lies ahead for ADA coin's price levels?

Why Cardano's (ADA) Price Fell

The recent dip in Cardano's price can be attributed to the Grayscale Digital Large Cap Fund (GDLC) selling off all its ADA assets. The fund chose to rebalance its portfolio, liquidating about 1.6% of its holdings in Cardano on April 4th.

A challenging start to April following a lackluster performance in March is causing worry among investors. Additionally, data from blockchain transactions indicates a potential continuation of Cardano's downward price trend.

Decrease in Cardano Whales' Activity

Data from cryptocurrency analyst Ali Martinez suggests a decline in activity among Cardano whales, major holders of the cryptocurrency. This observation is based on Santiment’s Whale Transaction Count metric, tracking ADA transactions worth over one million dollars.

Whales, significant players in cryptocurrency holding, can heavily influence market dynamics with their buying or selling actions. The decreased involvement of Cardano whales may imply a reduction in significant ADA transactions, potentially leading to a drop in the cryptocurrency's value.

Future Outlook for ADA Coin

Cardano (ADA) saw a promising start to the year, reaching a peak of $0.8 in March. However, it entered a downtrend thereafter, driven by Bitcoin's price decline. Presently, Cardano is trading around $0.58, showing a modest 2% increase over the last 24 hours.

Investors should exercise caution regarding Cardano's future price movements and closely monitor whale activities. Additionally, Bitcoin's price trajectory will be a crucial factor to watch. A positive turn for Bitcoin could signal a potential return journey for ADA coin towards $0.8.

In conclusion, Cardano faces a price drop amidst the wider crypto market decline, impacted by factors such as portfolio rebalancing and decreased whale activity. Vigilance and attention to market dynamics, especially regarding Bitcoin, are essential for investors navigating ADA's price trajectory.