- Cardano price rallied to $0.50 early on Friday, hitting a three-month peak.
- Nearly 80% of Cardano wallet addresses are currently profitable, priming ADA for sell-off.
- Cardano retail investors are accumulating ADA tokens while large wallet investors distribute their holdings.
Cardano price climbed to $0.50 after a three-month wait by ADA holders. The Ethereum-alternative token rallied alongside other top cryptocurrencies. Cardano’s price increase is accompanied by a distribution of whale wallet holdings.
Also read: Bitcoin analyst calls early bull market as BTC price targets $50,000 in December
Cardano price hits highest level in three months
Cardano price climbed from $0.38 on December 1 to $0.50 early on Friday, a rally of 31.5% in an eight-day timeframe. At the current price level of $0.52, nearly 80% of Cardano wallet addresses are sitting on unrealized profits, according to IntoTheBlock data.
ADA price is at a risk of correction if the aforementioned wallet addresses realize their gains, as it would increase the selling pressure on the asset.
Global In/Out of the Money Source: IntoTheBlock
On-chain metrics paint bearish picture
Large wallet investors holding ADA tokens have distributed their holdings starting September 24 while retail traders holding between 1,000 and 1 million ADA accumulated the altcoin consistently. According to Santiment data, this marks distribution by whale wallets and accumulation by retail traders.
Typically, distribution by whales is profit taking, however in the case of Cardano, despite whales shedding their assets, ADA price has risen.
 [17.30.18, 08 Dec, 2023]-638376367994017752.png)
Cardano wallet holdings of whales and retail traders Source: Santiment
The Market Value to Realized Value (MVRV) ratio for a 30-day timeframe is 19.59%, its highest level in three months, according to Santiment data. This is likely bearish for ADA as holders who acquired Cardano in the past 30 days are sitting on unrealized gains.
 [18.11.54, 08 Dec, 2023]-638376368331252934.png)
Cardano MVRV (30-days) Source: Santiment
At the time of writing, Cardano price is trading above the $0.50 level, after yielding nearly 38% weekly gains for ADA holders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EOS 22% pump steals the show unveiling Vaulta’s web3 banking ecosystem
EOS, the token behind the recently rebranded Vaulta network, has increased by a staggering 22% in the last 24 hours.
Curve DAO Price Forecast: CRV bulls could aim for double-digit gains above key resistance
Curve DAO (CRV) price is in the green, up 8%, trading above $0.53 on Thursday after rallying nearly 15% so far this week.
Bitcoin price reacts as Gold sets fresh record highs after Trump’s reciprocal tariffs announcement
Bitcoin price plunges towards $82,000 as Gold soars past $3,150 after US President Donald Trump imposed new tariffs on Israel and UK, triggering global markets turbulence.
Bitcoin and top altcoins slide as Trump kicks off reciprocal tariffs
Bitcoin (BTC) and the entire crypto market saw a quick correction on Wednesday following President Donald Trump's reciprocal tariff announcements based on half of each country's respective rates.
Bitcoin: BTC remains calm before a storm
Bitcoin's price has been consolidating between $85,000 and $88,000 this week. A K33 report explains how the markets are relatively calm and shaping up for volatility as traders absorb the tariff announcements. PlanB’s S2F model shows that Bitcoin looks extremely undervalued compared to Gold and the housing market.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.