The Cardano blockchain has experienced a period of relative calm since the beginning of July, mirroring a consolidation in ADA’s price. Alongside this, on-chain transaction data has revealed that Cardano whales – holders of large amounts of ADA – have also been relatively inactive since the last week of June. Daily whale inflows have remained consistently under 5 million ADA since the start of the month, with a recent spike catching the attention of market analysts.
Recent data from IntoTheBlock indicates a significant 1,218% increase in daily whale inflows, hinting at a possible uptick in ADA’s price. The Large Holders Inflow metric revealed a surge of 1,220% in whale inflow to the Cardano blockchain. Despite a gradual decline in daily inflows leading up to July 5, a sudden burst of activity at the beginning of the week saw the number of inflows into whale wallets spike from 14.51 million ADA on July 8 to 110.82 million ADA on July 9. This jump is particularly striking when compared to the mere 2.83 million ADA recorded on July 7, marking a staggering increase of 3815.9% in just two days.
Whale activity in the cryptocurrency market does not only directly influence prices but also has the power to sway overall market sentiment. These large holders of ADA tokens can instill confidence or fear among other whales and retail investors with their actions. For instance, a recent period of bearish sentiment drove ADA to a nine-month low of $0.3211, but a subsequent rebound now positions the token for a potential positive turnaround within a seven-day timeframe. At the time of writing, ADA is trading at $0.3936, reflecting a 2.25% increase in the past 24 hours. This short-term price surge has pushed ADA out of a falling wedge formation on the price chart, potentially paving the way for a 70% surge above the $1 mark.
Aside from price movements, developments within the Cardano ecosystem are also worth noting. Despite recent allegations of being a “dead coin,” the Cardano blockchain is preparing to launch a network upgrade. This upcoming milestone suggests a renewed interest in the project and could have implications for ADA’s future performance in the market. As whales continue to make significant moves and influence market dynamics, all eyes are on Cardano as it navigates this crucial juncture.
The recent surge in whale activity within the Cardano blockchain has raised eyebrows and sparked speculation about ADA’s trajectory. With whales holding a substantial portion of the circulating token supply, their actions carry weight in determining price movements and overall market sentiment. As ADA inches closer to potential price surges and network upgrades, investors and analysts alike will be closely monitoring the developments to gauge the long-term prospects of this prominent cryptocurrency.
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