Cardano Whale Makes $54 Million Coinbase Outflow: Sign Of Dip Buying?

On-chain data shows a Cardano whale has made a massive withdrawal from Coinbase, a sign that may be bullish for the ADA price.

According to data from cryptocurrency transaction tracker service Whale Alert, a large transfer has been spotted on the Cardano blockchain during the past day. The move in question involved the shifting of about 67.8 million ADA across the network, worth over $54.3 million at the time that the sender executed the transaction.

Considering the significant scale of the transfer, it’s likely that a whale entity was responsible for it. Whales are big-money investors who carry large amounts in their wallets and hold the power to make huge individual transactions. Because of this, these holders can have some degree of influence in the market.

As such, what they are doing on the network can be worth keeping an eye on, as it may reveal the sentiment among them. Usually, though, the anonymous nature of the blockchain means it can be hard to comment on the motive behind a particular transaction.

In the case of the current Cardano whale transfer, however, one side of the move involves a wallet that’s already known. Below are the address details related to the transaction.

As is visible, the sending address for this Cardano whale transaction was a wallet attached to cryptocurrency exchange Coinbase. Meanwhile, the receiver was an unknown wallet, meaning that it was likely the investor’s self-custodial address.

Transfers of this type, where coins flow out of the custody of a centralized exchange, are known as exchange outflows. Generally, investors make exchange outflows when they plan to hold their tokens in the long term, as self-custody tends to be a safer option for them.

The latest large Coinbase withdrawal has come as Cardano is significantly down compared to its peak from earlier in September. As such, it’s possible that the move could be an indication of the whale betting on the asset at the current post-dip prices. It only remains to be seen whether the gamble will pay off for the investor.

Another altcoin, XRP, has also just witnessed a large transaction, as Whale Alert has pointed out in another X post. Unlike ADA’s transfer, however, this whale move has been an Exchange Inflow.

In total, the XRP whale has shifted 18 million tokens of the cryptocurrency (worth around $51.4 million) to Coinbase with the transaction. Holders use exchanges for trading purposes, so it’s possible that the large investor may be looking to exit.

At the time of writing, Cardano is floating around $0.79, down almost 4% over the last seven days.