- Since May 16, ETH’s value has declined by more than 46% whereas ADA has only fallen by 18%.
- ADA whales have been on a buying spree over the past few days.
During broader market corrections, almost all tokens take a hit. However, some cryptocurrencies are relatively outperforming the broader market and seeing healthier dips than others.
Recent price movement shows that the native token of the Cardano blockchain, ADA has displayed resilience in the face of ongoing adversity. Earlier this week, while popular tokens like Bitcoin and Ether broke below their year-to-date lows, ADA’s price bounced once again from the key $0.45 price level.
As we can see in the chart below, ADA has clearly outperformed ETH over the past few weeks in terms of price action. Since May 16, ETH’s value has declined by more than 46%, while ADA has only fallen by 18%.
On-chain data from Santiment also reveals that ADA whales have been on a buying spree over the past few days. In the chart below, we can observe a cluster of spikes in whale transactions that were worth more than $100,000 (shown in red) and $1 million (shown in yellow ). This shows that the bigger players in the market rushed to buy the smart-contracts token during the dip.
Even though the whale activity seemed to be giving bullish signals, ADA’s rising network value to transaction ratio (NVT) is a worrying sign. The NVT ratio is a ratio of a network’s market capitalization to the number of transactions on the network. On June 15, the NVT shot up to an all-time high of 166. A high NVT ratio is indicative of the over-valuation of the network.
Despite the overvaluation, the ADA token seems to be enjoying a buyer’s bias at the moment. This may be attributed to the recent developments in the blockchain. On that note, the price outlook for the token will remain bullish over the coming weeks.
