2023-8-10 21:00 |
Cardano (ADA) has not exactly been the best performer in the last month. Instead, the altcoin’s price has continued to stall even during periods of market recovery.
However, this trend could change pretty soon given the current accumulation trend among sharks and whales, something that could take a significant chunk of available supply off the open market and trigger another rally.
Cardano Sharks And Whales Go To MarketIn a Tuesday post, the on-chain data aggregator platform Santiment revealed an interesting development concerning the ADA sharks and whales. The sharks and whales in this instance refer to wallets holding at least 100,000 ADA and at most 10 million ADA.
What Santiment has found is that this 100,000-10 million cohort has been consistently adding to their balances. The accumulation first began a little over two months ago on May 21, and since then, they have collectively bought over $116.1 million worth of ADA.
This buying spree also saw their trading volume rise significantly during this time as well. As the on-chain tracker revealed, the sharks and whales saw their cumulative volume cross 67 billion ADA toward the end of July.
As a result of their consistent buying, sharks and whales now account for 34.4% of the total circulating ADA supply. The last time that their holdings were this high was back in 2022, before the FTX collapse. Additionally, their cumulative trading volume is now sitting at its highest level since September 2021.
Will ADA Respond Positively?In the last two months in which the Cardano sharks and whales have been active, ADA has seen some encouraging price action. In July, its price jumped from below $0.3 to a local high of $0.37. But ultimately, the altcoin corrected back downward, losing a little over 20% of its value.
Since then, the digital asset has continuously struggled to maintain $0.29, with bears having more good days compared to bulls. However, there could be a change in the horizon given that investor sentiment seems to have skewed in favor of buying instead of selling.
What this means is that the mounting buying pressure could quickly see the price of ADA recover as demand grows. So it may not be long before ADA is retesting the $0.35 resistance again. And if this rally happens to coincide with a recovery in the price of Bitcoin (BTC), then it could beat its recent local peak of $0.37 and rally above $0.4.
For this to happen, though, the bulls would have to maintain control and the 6% jump in the altcoin’s daily trading volume in the last day could be evidence of this.
At the time of writing, ADA is trailing at $0.2991, up 2.93% on the daily chart. However, the asset is seeing 2.33% losses on the weekly chart.
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