Introduction

A potential reason has surfaced for the decline in the Cardano (ADA) price below the significant $0.7 level. The digital token experienced a sharp drop from its peak of $0.8 earlier in the month, specifically on March 14, and has struggled to regain that peak since.

Analysis Points to Whales Affecting Price

Insights from the crypto analytics platform Santiment indicate that the number of whale transactions (involving $100,000 or more) on the Cardano network has decreased since March 14. This suggests that ADA whales began cashing out profits after the price hit $0.8, gradually exiting their positions over time.

Price dips due to whale activity are a common occurrence in the market, with significant holders impacting market movements. Furthermore, profit-taking trends have been prevalent in the crypto space recently, with investors trimming positions across various tokens.

Even market leaders like Bitcoin have witnessed profit-taking behaviors after surging to a record high of $73,750. Long-term ADA holders have also seized the opportunity to profit from the market state, evidenced by a sizeable transaction of dormant ADA tokens on March 20, totaling 200 million units that had not moved for a year.

Prospects for ADA to Reach $1

Amidst the recent profit-taking environment, Cardano appears to be recuperating with indications of growth, albeit at a slower pace. Speculation is rife that ADA might overcome the $1 barrier in the foreseeable future. Notable crypto analyst Dan Gambardello has predicted a potential surge to the range of $1.4 to $1.5 if ADA manages to break past the $0.8 price threshold.

Monitoring Whales Returns for Uptrend

With expectations of an impending rise in transactions by ADA whales exceeding $100,000, there is an anticipation of heightened activity in the coming period. An upsurge in these transactions may signify that major investors are leveraging the current ADA price decline to increase their ADA holdings, potentially fueling a price appreciation based on their bullish outlook on ADA.

As of the latest data from CoinMarketCap, ADA is currently trading around $0.6513, showcasing a decline of nearly 4% in the past 24 hours.