On August 14, Santiment reported that there were 25,294 wallet addresses in Cardano holding at least 100,000 ADA, which is the highest in over 16 months. This increase in on-chain activities is a positive sign of growing interest in Cardano, despite the current downward pressure on prices, as seen in the daily chart.
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Cardano whales accumulating, ADA bull run soon? ADA Whales Accumulating
Looking at Santiment trends, it appears that ADA whales began accumulating as early as June 2022, and the number has been rising steadily ever since. However, amid this encouraging “bullish” signal, ADA prices have fluctuated, edged lower, and diverged with whales’ actions in the past 16 months. Cardano whales accumulating, ADA bull run soon?
ADA is changing hands at around $0.289 at spot rates, down from $0.465 when whales began loading up in mid-June 2022, as seen below.
According to recent data, there are over 25,000 whales holding at least 100,000 ADA as of mid-August, which is an increase of over 3,000 since June 2022. This could indicate a positive outlook for Cardano and its future prices.
In the world of cryptocurrency, whale activity is closely monitored as their actions can have a significant impact on market sentiment. The continued accumulation of ADA by these whales is seen as an endorsement of the project's potential and could potentially increase demand, leading to higher prices. Conversely, if they decide to sell off their holdings, it could trigger a sell-off and push asset prices lower.
Interestingly, ADA whales have been buying more of the coin even as Cardano's market capitalization has been declining from its 2023 highs. Despite the market cap dropping by at least 35% from $15.76 billion to $10.1 billion as of mid-August, ADA remains one of the most liquid coins with high average daily trading volumes and a prominent position on the leader board.
Cardano Building, ADA Resilient But Weak
Cardano is currently ranked eighth in the cryptocurrency market, ahead of Solana and Tron but behind XRP and Dogecoin in the top 10. Its current trading price is $0.289, which is down about 10% from its peak in August 2023. However, despite the recent decline, ADA buyers still hold a favorable position as indicated by the candlestick arrangements in the daily chart.
Although there have been lower lows, the gains made on July 13th have not been reversed by sellers, which is a positive sign for the immediate price action.
Cardano is currently in the Basho era, which is focused on improving scalability and network performance to support decentralized applications (dapps), particularly those in decentralized finance (DeFi). Notable improvements include pipelining and the release of Mithril, which are aimed at strengthening network security.
Furthermore, Cardano's leading developer IOG is working on Hydra, a layer-2 solution that will further increase scalability using off-chain channels.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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