According to Santiment data, dormant Cardano (ADA) wallets are waking up amid signs of a rebound. However, the awakening of dormant wallets has not yet translated to a price rally. CoinGecko shows that ADA’s price has risen by just 0.2% in the last 24 hours and is trading in the red zone in the other time frames. The development also comes amid increasingly bearish signals in the larger crypto market. Let’s discuss if the wallets will sell their holdings.
Will The Reawakening Cardano Wallets Sell Their Holdings?
Cardano (ADA) has faced significant hurdles in the last few years. The asset’s price has fallen by nearly 95% from its all-time high of $3.09. The project’s market cap has dipped from around $90 billion to just over $6 billion today.
Cardano’s (ADA) struggles were further reflected in the community voting against the annual Cardano summit. The decision was fuelled by increased costs of hosting the event amid falling ADA prices.
Cardano (ADA) founder Charles Hoskinson caused quite a stir recently after stating that the project could see the end of several DeFi platforms later this year. Although Hoskinson reiterated that he is “not going anywhere,” his statements may have rubbed off the wrong way among investors.
Also Read: Cardano Extends Partnership With the Olympics: Will ADA Rise?
It is possible that the dormant wallets are awakening due to Cardano’s (ADA) current predicament. Confidence in the project is low and macroeconomic conditions do not favor high-risk assets. Inflation in the US has risen to 4.2% which has significantly reduced chances of an interest rate cut. The wallets could decide to sell their holdings and take new positions in more lucrative assets.
On the other hand, it is also possible that the wallets are simply shuffling their holdings. Nothing is for certain just yet.