Cardano (ADA), the native token of the Cardano blockchain, has seen a period of relative quietude since early July, mirroring a consolidation in its price. This lull extended to on-chain whale activity, with daily inflows hovering below 5 million ADA throughout most of the month. However, a recent surge has rekindled speculation about a potential price upswing for ADA.
According to data from IntoTheBlock, a blockchain analytics platform, there’s been a staggering 1,218% increase in daily whale inflows into Cardano. This surge comes after a steady decline observed since July 5th. On July 9th, the number of tokens entering whale wallets spiked from 14.51 million ADA to a whopping 110.82 million ADA, a significant jump compared to the mere 2.83 million ADA recorded two days prior.
The Large Holders Inflow metric, as defined by IntoTheBlock, tracks the movement of ADA into wallets holding at least 0.1% of the circulating supply. With a current circulation of 35.87 billion ADA (as per Coinmarketcap), these “whale” wallets hold a minimum of 35.87 million ADA each.
While a minuscule 0.01% of total Cardano addresses fall within the 10 million to 100 million ADA range, they collectively control a significant portion (36.26%) of the circulating supply. This influence makes their activity a prime indicator of potential price movements.
Whale activity can not only directly impact prices but also influence overall market sentiment. Their actions, whether buying or selling, can instill confidence or sow fear among other investors, both retail and institutional.
In the recent past, bearish sentiment dragged ADA down to a nine-month low of $0.3211. However, the token has since rebounded and is on track to close the week in positive territory. At the time of writing, ADA is trading at $0.3936, reflecting a 2.25% gain in the last 24 hours. This uptick has also seen ADA break free from a falling wedge technical pattern, potentially signaling a future surge that could push the price above $1 (a roughly 70% increase).
Adding to the optimism is the upcoming upgrade to the Cardano network. The blockchain, which some have criticized as a “dead coin,” is poised for a significant update that could further bolster its capabilities.
While the recent whale activity is certainly noteworthy, it’s crucial to remember that correlation doesn’t always imply causation. Further market analysis and observation are needed to determine if this surge will translate into a sustained price increase for ADA.