• Large portfolio investors in the Cardano network have begun selling or redistributing their holdings.
• The Cardano whales have been losing their assets ever since the Ethereum killer broke above the $0.38 level on January 21.
• The ADA price has broken out of a multi-month downtrend and the next bullish target represents a 10% rise.

Cardano, an Ethereum competitor and proof-of-stake blockchain network, has witnessed a decline in ADA holdings from large wallet investors. Whales holding between 1,000,000 and 100,000,000 ADA tokens have dumped their Cardano holdings, likely as a result of profit-taking following the January rally.

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Cardano whales are losing ADA tokens since the price hit $0.38

Cardano large network portfolio investors, with between 1,000,000 and 100,000,000 ADA tokens have started selling/redistributing their token holdings since January 21. On January 21, the Cardano price crossed the $0.38 level, an important milestone for the Ethereum killer. The altcoin recaptured this level for the first time since the crash of the FTX exchange and the prolonged bear market of 2022.

Based on data from crypto intelligence tracker Santiment, the count of addresses containing between 1,000,000 and 100,000,000 ADA tokens has decreased from 2,860 to 2,828.

Cardano Large Wallet Investor Holdings

The chart above reveals how whales have parted with their holdings, more recently but also in the past, profiting when the asset price has risen to a local peak.

Since January 25, while Cardano the price continued its rise, whale wallets that were between 1,000,000 and 100,000,000 fell steadily. This suggests that the whales are posting gains in tranches as Cardano trends higher.

Cardano bulls brace for ADA price to rally to $0.4248

Cardano is currently changing hands just above the $0.39 level. The Ethereum killer has arguably reversed its bear market trend, at least in the short term, after breaching the Nov 8 highs at $0.3985 on heavy volume and very strong momentum. This move favored bullish ADA traders. Furthermore, Cardano has broken above the 50-day EMA.

ADA/USDT Perpetual Futures Contract Chart

As seen in the ADA/USDT perpetual futures chart above, Cardano has posted two consecutive higher highs and lows. If there is a continuation of the uptrend of ADA, the 200 day EMA at $0.4248 is resistance and a bullish target for the altcoin. The next target is the 23.6% Fibonacci retracement of $0.4740.

There is a difficult resistance zone at $0.4287 to $0.5585. This level could see a pullback or pullback in Cardano and prevent the Ethereum killer from progressing towards the 38.2% Fibonacci retracement target of $0.6205.