Cardano (ADA) price could be bottoming as the coin has dropped to $0.16, which is a pre-2021 bull run level. On-chain metrics point out that the market could be hitting a reversal point, and ADA’s prices, which were falling for 10 months straight, might come to an end.
Dormant ADA wallets resurrect
ADA prices have reached December 2020 levels, just before the 2021 bull run, and the dormant whale wallets have started to get active during the recent past. According to Santiment, an on-chain tool, $ADA’s Mean Dollar Invested Age, which gauges the average age of capital sitting in ADA wallets, had been steadily climbing before these dormant wallets began to make some large moves.
In addition, there was a spike in the Age Consumed metric, calculated by multiplying the [Coins moved] by the [Number of days those coins were inactive].
ADA cofounder sells 1.5 billion ADA coins
According to a technical analyst who goes by the pseudonym Duo Nine, “Charles sold over 1.5 billion ADA coins between $1 and $3 in the 2021 run. Then also paid $200M in ADA to Gavin.” Gavin Wood is the cofounder of Ethereum and the founder of Polkadot.
As shown in the chart below, ADA prices have crashed to December 2020 levels, and this crash comes just a few days after cofounder Charles Hoskinson announced that he was taking a break.
Looking at the chart below, it could be seen that ADA is exactly placed at pre-bull run 2021 levels, and a repetition of this pattern could happen in the coming days. And maybe the whales anticipating this move have started moving their ADA out of wallets and onto exchanges.
Back in 2021 when the price spiked, it was not a gradual rise, but it was spontaneous. ADA skyrocketed from below $0.15 to $2.50 in just a couple of weeks. As such, the whales could be preparing for yet another spike and are preparing for capitulation.
ADA prices creep into extreme oversold levels
When taking a close look at the prices, ADA is extremely oversold at this point, as the relative strength index indicator shows a value of 21. This data shows that ADA is undervalued by levels not seen within the recent past.
As such, the markets could correct the prices, and there is a chance that ADA could once again come back to life. It’s not just on the charts that ADA looks bullish, but even the community, despite all the recent adverse incidents, still believes in the project.
Hence, all these point to the coin potentially bottoming during this time with the price oversold. Although there might not be a bull run like in 2021, the ADA price has the potential to appreciate.
