This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The recent surge in the price of Cardano (ADA) may have been triggered by a pattern observed by on-chain analytics firm Santiment. According to Santiment, there was a sudden loss of wallets holding ADA prior to the rally. The “Supply Distribution” indicator, which tracks the number of wallets in different groups based on the number of tokens they hold, showed a significant decrease in the number of wallets in the 10 to 100 coins group and the 0 to infinity group on November 17. Interestingly, 98.1% of the wallets involved in the selloff belonged to small holders, suggesting that larger entities like sharks and whales were not heavily affected. This mass exodus of small holders may have led to a price turning point and potentially created an opportunity for big money investors to buy ADA at a lower price. Since the mass exodus, Cardano has rallied around 65%, indicating that this pattern may have contributed to the surge.
However, despite the recent rally, the price of ADA has experienced a notable pullback, declining by almost 11% from its local top of $0.648. It is currently trading around the $0.577 mark. While Cardano initially showed sustained bullish momentum, the rally has cooled off in the last few days.