Cardano Tumbles 10% Friday As Grayscale Dumps Its Holdings

Cardano ( ADA ), a cryptocurrency, experienced a 10% decline in value over the week. This was due to Grayscale Fund's announcement that it would be removing the token from its portfolio. The decision has raised concerns among analysts that Cardano ( ADA ) may face further price consolidation or a drop in value.

Grayscale Digital Large Cap Fund manages $579 million in assets and previously had 1.62% of its portfolio, worth $9.4 million, invested in Cardano ( ADA ). However, the fund liquidated all of its ADA holdings and invested in Avalanche instead.

Cardano ( ADA ) may face a price consolidation or an impending drop following a lull in activity. Despite a 12% price drop, 48% of Cardano ( ADA ) holders remain profitable, while 49% are currently out of profit. The token has a Relative Strength Index (RSI) of 40.19 indicating a weak buying momentum.

Essential Cardano's weekly development report highlights a significant milestone for the project, having completed 88.6 million transactions. The report also mentions 164 launched projects, 1,353 projects under development, and over 9.86 million native tokens.