Blockchain

In the wake of a sideways XRP price action followed by a significant decline after Ripple’s legal victory against the US Securities and Exchange Commission (SEC), a new wave of speculation has emerged, fueled by the astrology-inspired tattoo sported by Ripple CEO Brad Garlinghouse. 

Unveiled during a recent Ripple party held to celebrate the legal triumph on July 13, the tattoo has captured widespread attention, triggering discussions and conjecture about its potential significance.

And as for any “announcement” that people are wondering about, tonight’s event is just a celebration…but I will share my recent addition: pic.twitter.com/q4THzsr4Fp

— Brad Garlinghouse (@bgarlinghouse) September 29, 2023 

Ripple CEO’s Intriguing Tattoo Sparks Speculation

The tattoo, prominently displayed on Garlinghouse’s arm, features a combination of intriguing symbols, including the XRP logo, moon, planets, rocket, and constellations. 

XRP enthusiasts have been dissecting these elements in search of hidden messages and insights into Ripple’s long-term plans. Some interpret the tattoo as a bold statement of confidence in XRP’s prospects. In contrast, others delve deeper into its symbolism, particularly regarding the next anticipated XRP price surge date.

Jeremy Hogan, a prominent lawyer supporting XRP, has taken on the role of decoding the tattoo’s cryptic meaning. According to Hogan, the tattoo’s elliptical shape represents the solar eclipse that will occur on April 8th, as observed from the coordinates 37°46′39″N 122°24′59″W. 

Notably, this elliptical path intersects with the full “moon” when viewed from northern latitudes. Many within the XRP community have embraced this interpretation, considering it a potential indication of an upcoming bull run.

Historical patterns in the cryptocurrency market are worth considering to bolster this hypothesis regarding a potential price surge on April 8 or in the first half of 2024. These patterns lend credibility to the notion that significant events, such as the Bitcoin halving, can influence market trends.

In April, the next Bitcoin halving is expected, marking a reduction in the mining reward for Bitcoin. Past halving events have often coincided with notable price increases for Bitcoin, suggesting a potential positive impact on the broader cryptocurrency market.

Moreover, another crucial factor that could propel XRP to new heights is the possibility of another legal victory against the US SEC. Such a win could restore confidence and open doors for further adoption and usage of the token. 

Although the outcome remains uncertain, these developments contribute to an atmosphere of anticipation within the crypto community.

XRP Price Struggles Below Key Moving Averages

After experiencing a prolonged downward trend over the past three months, the price of XRP has now dipped below two critical levels: its 200-day and 50-day Moving Averages (MAs). 

These MAs have proven to be significant obstacles to the token’s potential for future growth, suggesting the possibility of a retracement or consolidation phase below current price levels.

XRP is trading at $0.5117, positioned below the 200-day MA of $0.5196 and the 50-day MA of $0.5290. These levels now serve as resistance barriers for the token, making it more challenging for XRP to regain upward momentum.

Another noteworthy indicator of the unsuccessful attempt to penetrate upper resistance lines is XRP’s squeeze momentum indicator and ADX. 

The squeeze momentum indicator indicates a downward slump in what was anticipated to be an upward movement, impeded by the resistance barriers. Additionally, the ADX reflects declining buying activity and bullish momentum among investors and bulls.

The future course of XRP remains uncertain, as it is yet to be determined whether the token will succumb again to a wave of selling pressure or remain in a consolidation phase below these critical levels, potentially delaying another uptrend.

Featured image from Shutterstock, chart from TradingView.com  

A recent analysis by an analyst has painted a clearer picture of just how volatile the crypto market has been, especially for those who took their chances on lesser-known altcoins a few years back.

The analyst studied the top 100 cryptocurrencies as they stood in December 2017 and found that the fortunes of these digital assets varied significantly over the past six years.

From Prominent To Obscure: The Rise And Fall Of 2017’s Crypto Stars

Six years in the financial world is relatively short, but it can seem like an eternity for the fast-paced crypto market.  An X (formerly known as Twitter) user named davanai shared his analysis of the top 100 cryptos in 2017, revealing some startling figures.

Out of the top 10 cryptos, New Economic Movement (XEM) is the only one that has dropped out of the top 100 list. On the other hand, previous giants like Monero and Dash are teetering on the brink of exiting the elite group.

Amid these declines, the twin towers of the crypto world, Bitcoin (BTC) and Ethereum (ETH), have held their positions at 1st and 2nd spot, respectively. XRP, among the most discussed cryptos in the 2017 bull run, has slipped only slightly to the 5th position.

Cardano (ADA), too, while losing two spots, remains in the top ten. However, not all stories are of resilience. Populous Coin (PPT), once the 19th largest crypto, is now a shadow of its former self, trading at 99.97% below its all-time high.

Distinguishing The Winners From The Losers

Interestingly, the analyst classified 27 of the top 100 cryptocurrencies as “scams”. While this doesn’t directly confirm any deceit, these digital currencies have nearly vanished in terms of market presence and activity.

Out of the top 100, just 21 achieved record highs during the initial three months of 2021, while 68 remain below their highest valuations from 2017 or “almost a scam,” according to the analyst.

Research statistics:

5 of 20 are worth more than ATH 2021
27 of 100 SCAM project
68 of 100 are below ATH 2017 or almost a scam

21 of 100 updated ATH in 2021
79 of 100 will never update ATH

— davanai (@0xdavanai) October 2, 2023

On the brighter side, three altcoins have climbed up in their rankings since 2017. Binance Coin (BNB), Chainlink (LINK), and Dogecoin (DOGE) have defied the broader trend, proving that it’s not all doom and gloom in the altcoin world.

The findings provide a cautionary tale for crypto investors. As the analyst pointed out, purchasing the top 100 cryptos would likely result in losses over time. As traditionally understood, diversification may not apply in the high-stakes world of crypto investing.

• You should buy altcoins with a clear understanding of the situation, and not relying on luck

• Don’t listen to fables about diversification, because only 3 out of 100 tokens are profitable in the long run

• Cryptocurrency profitability is about mindset and strategy

— davanai (@0xdavanai) October 2, 2023

Featured image from Unsplash, Chart from TradingView

XRP price might have struggled to leave the $0.50 range over the last several months, even despite a victory in Ripple’s case with the SEC. 

But all that could change in Q4 2023, as the fourth quarter of the year is historically the most bullish for the altcoin.  With this in mind, let’s dig into the data and see how Q4 stacks up against the historical performance of other quarters of the year. Plus, we’ll pin-point precisely which month is by far the most bullish of them all. 

Q4 Performance Is The Best Historically For XRP Price

XRP price at the moment is trading at around $0.51 after a fierce rejection following Ripple’s big win in the case against the SEC. The altcoin was promptly relisted on top cryptocurrency exchanges, but it hasn’t led to the demand necessary to sustain higher prices. 

But that could change soon, now that Q3 is over and Q4 is here. The cryptocurrency is coming out of its worst quarter on average, so lack of performance isn’t too surprising. Q4, however, according to historical averages in performance across all quarters, is by far the most substantial. 

Q4 on average has provided an average of 30% ROI. Right behind it is Q2, posting roughly 22% ROI. Q1 averages a modest 13%, while Q3 comes in last with only 6% on average. There’s no guarantee this data will translate into returns during this last quarter of the year, but seasonality and serial correlation are common in finance and cryptocurrencies. 

Why It Could Take Til December For The Bull Run To Begin

Unfortunately, October isn’t the beginning of a massive bull run the previous text makes it sound. While the data doesn’t lie — XRP price performs the best historically in Q4 on average, but Q4 represents October through the end of December. 

On a month-by-month basis, October is actually the third worst month on average. If the same positive seasonality in XRP were to follow along the data’s projections accurately, then it would also suggest that October might be another month of pain and sideways for investors. 

At an almost 12% gain in November on average compared to October’s 1.5% average decline, the second to last month of the year will turn things green. But even November isn’t quite the relief XRP holders would hope for.

That doesn’t arrive until December, which is by far and away the best month on average for XRP, with an 80% ROI on average. The one caveat, is that the majority of the returns occurred during the 2017 bull market, potentially skewing the results. Removing the outlier from the data would almost certainly change the results significantly.

Over the last month, a number of XRP price predictions have dominated crypto headlines. Some of these predictions have been greatly exaggerated, but there have been some that have come up on the more realistic side. Whether or not these XRP price predictions have been probable, there are some merits to actually paying attention to them.

XRP Price Predictions Signaling Investor Outlook

Price predictions are not new to crypto and they can often be a way to gauge how investors, especially traders are looking at a cryptocurrency. In recent times, the focus has mainly been on the XRP price, and with most of the predictions being bullish, it indicates widespread bullishness across the community.

A good portion of this bullishness can be attributed to Ripple’s win over the US Securities and Exchange Commission (SEC) back in July. Following the ruling, the price of XRP jumped over 60%, reaching its highest point in a month.

Even though the US SEC has contested Judge Analisa Torres’s ruling and filed an interlocutory appeal, it has not eliminated the long-term bullish outlook for the XRP price. This is because multiple legal experts have talked about the SEC’s interlocutory filing and the consensus has mainly been a low chance of success.

Additionally, if Ripple were to emerge victorious in the interlocutory appeal as well, it would cement XRP’s status as a non-security. This would bolster the already renewed fate and signal the entrance of more institutional investors into the asset.

Looking At Some XRP Predictions

Some XRP price predictions have been more realistic than others and those take precedence in this report. One of those is the 1,100% surge predicted by crypto analyst Dark Defender, who put the altcoin’s price at $5.85 in a couple of years.

However, one analyst believes that the XRP price could rise as high as $25 following a 5,000% surge. While another analyst Oaksacorn put forward one of the most bullish predictions of XRP rising to reach the $250 level.

For Wells Fargo Manager Shannon Thorp, XRP is primed for even greater heights. Thorp points to Ripple’s rising prominence in the cross-border payments sector and as the sector is expected to reach $250 trillion, she believes this could drive the XRP price to $500.

All of these forecasts have varying timeframes for when the analysts expect them to play out. However, one thing they have in common is general bullishness toward the XRP price, especially when put into the perspective of long-term performance.

Bitcoin has observed a pullback in the past day, but these factors may imply that the cryptocurrency’s rally can continue.

These Factors Could Suggest A Bullish Outcome For Bitcoin

A couple of days back, Bitcoin had started observing some sharp upward momentum, and by yesterday, the cryptocurrency had managed to breach the $28,500 level. In the past day, however, the asset has registered a decline, falling below the $27,500 mark.

While it’s uncertain whether the rally is over or not, some signs can be optimistic for the investors. As explained by the on-chain analytics firm Santiment, two positive developments have occurred related to Tether (USDT), the largest stablecoin in the cryptocurrency sector.

The first indicator of relevance here is the “USDT supply on exchanges,” which measures the percentage of the total circulating supply of the stablecoin in the wallets of all centralized exchanges.

Here is a chart that shows the trend in this Tether metric over the past year:

Usually, investors store their capital in the form of a stablecoin like USDT whenever they want to avoid the volatility associated with the other assets in the sector. Such investors generally plan to go back into the volatile side of the market eventually, though, as they would have instead gone for fiat if they didn’t.

Once these holders feel the time is right to dive into Bitcoin and other coins, they trade their stables for their desired cryptocurrencies. Naturally, such a shift provides a bullish boost to whatever assets they buy using their stablecoins.

Investors generally use exchanges for conversions like these, so the current supply on these platforms can be considered potential dry powder ready to be deployed into BTC and others.

The graph shows that the Tether supply on exchanges had plunged to a low of 17.6% a few months back, implying that the available buying pressure from the stablecoin had run out.

Interestingly, this low in June had occurred in the leadup to a sharp Bitcoin rally, implying that the plunge in the exchange reserve of the stablecoin was, in fact, because of it being converted into the asset, thus providing the fuel for the surge. However, the rally back then couldn’t be sustained, as BTC eventually faced a struggle.

In the months since this low, USDT reserves have slowly built back up on exchanges, as 24.7% of the stablecoin’s supply is now sitting on these platforms. Unlike that previous rally, it would appear that this latest surge has a store of potential buying power available that may be deployed at any time.

In the chart, Santiment has also attached the data for another metric: the combined supply of the ten largest Tether whales. It would appear that these humongous investors have also increased their holdings during this period, implying that they also carry significant dry powder now.

It now remains to be seen whether this stored-up USDT will be converted into the cryptocurrency to provide support to the surge in the coming days or not.

BTC Price

At the time of writing, Bitcoin is trading at around $27,400, up 5% in the last week.

Just like the rest of the crypto market, the Shiba Inu price saw an uptrend at the start of the week before correcting back downward on Tuesday morning. However, this decline may point to the meme coin gearing up for another rally that could see it rise more than 400% and there are reasons why.

The Blessings Of October

One of the first reasons that suggests a massive surge this month is how the asset has performed historically in the month of October. Looking back at previous years, the Shiba Inu price had shown incredible strength in October 2021 rising over 800%, which eventually led to its all-time high.

Then in October 2022, the altcoin marked a double-digit rise even amid the start of a very bearish market. Although this was much smaller than its 2021 figures, it was significant nonetheless and registered October as a bullish month for the altcoin. Going by the average of both of these figures, analytics platform CryptoRank posits that the Shiba Inu price could rise over 400% this month if it sticks to its historical performance.

Shibarium Continues To Grow

The Shiba Inu Layer 2 blockchain, Shibarium, built atop the Ethereum network debuted in August. Following this, there have been some notable milestones for the network. One of these is the total number of transactions that have been carried out.

Data from ShibariumScan shows that the network has now crossed 3 million transactions. Additionally, wallet addresses on the network are now more than 1.25 million. The total blocks produced are also inching closer to the 1 million mark with each passing day.

These metrics point to a growing rate of adoption which could significantly impact the Shiba Inu price. This is because SHIB serves as the governance token of Shibarium and participants who want to be involved in governance will need Shiba Inu tokens to do so, increasing demand.

Shiba Inu Price Trajectory

The Shiba Inu price has traded in a tight range between $0.0000071-$0.0000075, which suggests that the meme coin is finally finding a bottom. As a result, it could see a recovery using this point as a launch point and re-testing the resistance at $0.0000075.

If this resistance falls and bulls take control, it will be smooth sailing for Shiba Inu. Add in the recovering crypto market sentiment as shown by the Fear & Greed Index moving up into neutral. Shiba Inu will naturally follow the trajectory of Bitcoin and such a recovery would take it above $0.000008.

At the time of writing, SHIB is sitting at $0.000007279 after falling 3.33% in the last day. Its market cap of $4.2 billion makes it the 18-largest cryptocurrency in the industry.

Yesterday’s launch of futures-based Ethereum (ETH) exchange-traded funds (ETFs) delivered underwhelming results, with shallow trading volumes indicating a deficient demand for ETH exposure.

Furthermore, a recent report by The Wall Street Journal report by The Wall Street Journal, it was revealed that the launch of the first Ethereum exchange-traded funds on Monday generated little interest from small investors. 

These ETFs provided individual investors access to the second-largest cryptocurrency through brokerage accounts. However, per the report, most of the futures-based Ether ETFs ended the day in the red, with a combined trading volume of less than $2 million.

Red Flags For Ethereum ETFs?

The Ether ETFs, offered by prominent asset management firms such as ProShares, VanEck, and Bitwise Asset Management, are entering a highly competitive market. Experts believe these funds will have to compete fiercely in cost and marketing strategies to attract investors amidst the crowded landscape.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, expressed his concerns regarding the funds, stating: 

A lot of these funds are going to struggle to get assets. There’s probably only room for one stud in this race.

During a Bloomberg TV appearance, Balchunas emphasized the relatively low trading volume of the Ethereum ETFs compared to BITO, a Bitcoin (BTC) ETF that tracks the price of BTC using Bitcoin Futures launched in 2021. 

Notably, the trading environment for the first futures-based Ether ETFs differs significantly from the first futures-based Bitcoin ETFs. ProShares’ initial Bitcoin ETF (BITO) debut, which took place during the peak of the crypto bull market, was one of the most highly traded ETF launches ever. 

Conversely, on the inaugural trading day of Ether future ETFs, the value traded amounted to nearly $1.9 million by noon, with Valkyrie emerging as the frontrunner in the race for Ether futures ETFs. Initially focused on Bitcoin futures and later expanded to include Ether, the fund experienced a 3.9% increase.

VanEck’s EFUT managed to generate some volume by launching ahead of its competitors. However, volumes quickly dwindled, with a staggering 49% of EFUT’s daily volume occurring within its first trading minute. 

Disappointing Launch Day For Futures-Based ETH

Senior analyst of k33 research, Vetle Lunde, suggests that this lackluster launch points to more choppy market conditions ahead. The highly anticipated launch day failed to meet market expectations, reminiscent of the underwhelming debut of Bakkt. 

This sheds light on a seemingly “non-existent” demand for additional crypto exposure, indicating a continuation of the current consolidation range in the market.

In defense of the lackluster ETF launch, it is worth noting that activity in crypto ETFs has been consistently shallow in recent months. BITO, for example, has witnessed consistent outflows since mid-July and experienced its third-lowest average daily volume (ADV) in September 2023, surpassed only by volumes in August and December 2022.

The Ethereum futures products launched on Monday, along with their respective net expense ratios, include:

BitWise Ethereum Strategy ETF (AETH) – 0.85%
Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) – 0.85%
ProShares Ether Strategy ETF (EETH) – 0.95%
ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) – 0.95%
Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) – 0.95%
VanEck Ethereum Strategy ETF (EFUT) – 0.66%.

The disappointing debut of futures-based ETH ETFs underscores the challenges in generating substantial investor interest in crypto ETFs. As the crypto market continues to evolve, market participants will closely monitor developments and assess the impact on investor sentiment and the future of crypto ETFs.

Featured image from Shutterstock, chart from TradingView.com 

Shiba Inu (SHIB) tokens worth a staggering $3.2 million have made their way onto Coinbase, according to recent data on Etherscan. This substantial transaction, involving a jaw-dropping 425 billion SHIB tokens, has raised eyebrows within the cryptocurrency community. 

The timing of this move couldn’t be more intriguing, as Shiba Inu has been experiencing a rollercoaster ride alongside the broader crypto market.

Shiba Inu’s recent price action has been nothing short of dramatic. It surged in tandem with other cryptocurrencies but is now confronting significant resistance. The pivotal 50 EMA (Exponential Moving Average) level stands as a crucial test for the token’s short-term trajectory. 

Should SHIB fail to break through this resistance, a potential trend reversal could be on the horizon, possibly catalyzed by large-scale sell-offs, much like the mammoth transaction to Coinbase.

Although $3.2 million might not be a tidal wave in SHIB’s liquidity pool, it does invite some intriguing queries about the grand designs of prominent SHIB holders. Could this financial maneuver be a harbinger of a broader pattern in the making?

It’s entirely conceivable that these crypto behemoths are seizing the opportunity presented by recent profits, especially given SHIB’s impending clash with a pivotal resistance threshold.

This transaction could serve as an early indicator of a more extensive trend in the SHIB community. Cryptocurrency markets are known for their volatility, and major holders often wield considerable influence. Thus, when they make a move of this magnitude, it can trigger a domino effect, influencing other traders and shaping market sentiment.

Moreover, the timing of this transaction is noteworthy. SHIB is approaching a critical resistance level, a juncture where its price could either break through to new highs or face a substantial pullback.

SHIB’s Current State And Burn Program

As of now, Shiba Inu is trading at $0.00000730, as per CoinGecko data, reflecting a 3.8% decline in the past 24 hours. Over the course of the last seven days, SHIB has managed to eke out a marginal gain of 0.1%. These price fluctuations highlight the volatility that has become synonymous with meme tokens like SHIB.

Interestingly, amid these price swings, the Shiba Inu burn rate has returned to the green zone. Nearly 95 million SHIB tokens were burned in the last 24 hours, underscoring the unwavering commitment of the SHIB community to the burn program.

This program aims to reduce the substantial circulating supply, which has often been blamed for the token’s lackluster price performance.

According to a price report, the total number of SHIB tokens obliterated now stands at 410 trillion. This impressive feat has brought the total supply down from 999 trillion to 589 trillion SHIB. Currently, approximately 10 billion SHIB tokens are locked in staking contracts, leaving the circulating supply at around 580 trillion.

Shiba Inu: Potential Price Impact

The recent influx of SHIB tokens onto Coinbase and the ongoing burn program’s success are sure to keep investors and crypto enthusiasts on the edge of their seats. The question of whether SHIB can surmount its resistance and sustain its rally remains unanswered. 

As the crypto market continues to evolve, SHIB’s fate may well depend on the interplay between its passionate community, whale movements, and market sentiment.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Pixabay

The crypto community is buzzing with excitement as rumors spread about a possible collaboration between the CEO of Pershing Square Capital Management and Elon Musk’s X. Ackman’s desire to potentially work with X has grabbed the attention of investors, raising questions about the possible impact on the cryptocurrency market, specifically on digital coins like Dogecoin. 

Ackman Signals Willingness To Strike Deal With Musk’s X

According to reports from The Wall Street Journal, Bill Ackman, an American Billionaire hedge fund manager and founder and CEO of Pershing Square, has stated his interest in striking a deal with Elon Musk’s recently rebranded X social media platform. 

When asked by The WSJ if he would be interested in enacting a deal with X, Ackman responded by saying “Absolutely.” The American billionaire has been an avid user of X platform, amassing almost 800,000 followers and broadcasting his views on various global topics and issues. 

The Pershing Square CEO also recently disclosed the regulatory approval of its unique investment vehicle, SPARC by the United States Securities and Exchange Commission (SEC), allowing the financial vehicle to target and invest in privately held firms and move them into a public domain. 

Ackman announced in an X post, urging private companies looking to go public to consider Pershing Square as an investor. 

“If your large private growth company wants to go public without the risks and expenses of a typical IPO, with Pershing Square as your anchor shareholder, please call me. We promise a quick yes or no,” Ackman stated. 

Although Ackman has revealed his willingness to potentially collaborate with X, Musk has not released any acknowledgment or confirmation of Ackman’s statement. Investors, however, are curious about the potential influence the alleged collaboration would have on Dogecoin cryptocurrency. 

What Does This Mean For Dogecoin?

The speculation about X’s dealing with Ackman’s investment vehicle has led to whispers about potential market changes and possibilities for Dogecoin. 

Since Dogecoin is known to be highly favored by Musk, who is believed to be one of the largest investors of the cryptocurrency, industry investors see the possibility of cooperation between Ackman and X driving Dogecoin’s market price toward a $0.75 mark. 

There have also been previous speculations that Musk would implement DOGE payments as he deploys X bots in his new X payment plans.

Crypto enthusiasts and industry investors have seen Musk’s heavy influence on the price of Dogecoin over the years and are looking forward to the changes the cryptocurrency would have if rumors of Ackman’s alignment with X come to fruition. 

Currently, the price of Dogecoin is trading at $0.062 with a 24-hour trading volume of over $238 million. The cryptocurrency is presently facing a bullish uphill climb to the $0.07 mark, however, market metrics have revealed challenges in Dogecoin’s upsurge.

On-chain data shows the profit-taking among Cardano investors has spiked to high levels, a sign that the asset may register a decline in the coming days.

Cardano Has Observed High Profit-Taking After The Rally

According to data from the on-chain analytics firm Santiment, AAVE, ADA, and CRV are among the altcoins that have recently observed the most extreme profit-taking.

The relevant indicator here is the “ratio of daily on-chain transaction volume in profit to loss,” which, as its name suggests, tells us about how the profit-taking volume of any cryptocurrency compares with its loss-taking volume.

This indicator works by going through the on-chain history of each sold coin to see what price it was last moved at. If the previous selling price for any coin was more than the current value it’s being moved at, then its sale contributes to the loss volume. Similarly, the sale would count under the profit volume if it were otherwise.

When the value of this metric is positive, it means that the profit-taking volume is more than the loss-taking volume right now. On the other hand, negative values suggest the dominance of the loss-taking volume.

Now, here is a chart that shows the trend in this indicator for Cardano, Aave, and Curve over the past month or so:

As displayed in the above graph, the indicator appears to have observed a large spike recently for all three of these altcoins. During the peak of this surge, the metric’s value had been among the highest levels observed in the year so far.

This interest in profit-taking occurred after these cryptocurrencies had observed their respective rallies, following Bitcoin’s surge beyond the $28,000 mark.

This extreme profit-taking spree has hit Curve the hardest, as the cryptocurrency has plunged almost 7% during the past day. Cardano has held onto some of its recoveries, as the decline has only been about 2%.

Aave has not felt any negative effects from this profit-taking, as the cryptocurrency price has mostly continued to move sideways in the past day.

While ADA has shown some strength against the profit-taking, it’s still a concerning sign for the asset that its modest recovery rally has instigated such an extreme reaction from the market.

It would seem possible that some of the investors had been waiting for an exit opportunity, however small, and once they got it in the form of this surge, they swiftly sold their coins. If the profit-taking continues in the coming days, Cardano may retrace more of its recovery.

ADA Price

Cardano had approached the $0.27 level at the peak of this rally, but since then, the asset has slumped back toward the $0.26 mark.