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Can Cardano (ADA) Receive a Boost From Recent Whale Activity?

Can Cardano (ADA) Receive a Boost From Recent Whale Activity?

Cardano (ADA), the smart contracts platform known for its energy-efficient Proof-of-Stake system, has seen its price pick up despite the broader cryptocurrency market correction. Recent on-chain data suggests a surge in activity from large investors, often nicknamed “whales.”

Factors Driving Volatility in Cardano

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  • Cardano Market Slump: ADA’s price is currently down over 11% on the weekly chart, trading at $0.4536. The market capitalization has also dropped significantly, indicating a period of volatility.
  • Whales Return to Cardano?: On-chain data from Santiment reveals a surge in large transactions (over $100,000) on the Cardano network, reaching their highest level since November 2023. Historically, such activity has coincided with potential price reversals for ADA.
  • Technical Outlook: Analysts like Cobra Vanguard identify an expanding price channel for ADA since the year’s beginning, suggesting continued volatility. Price targets range from $0.52 to a bullish $0.77 if certain hurdles are crossed.
  • Active Wallets on the Decline: Despite the whale activity, Santiment shows a slight decrease in active Cardano wallets over the past three months. This anomaly could indicate undervaluation or declining investor interest.
  • Whales Accumulating ADA?: Santiment also suggests a growing trend of accumulation among large holders, with addresses containing significant ADA increasing their holdings since April. This could be a bullish sign for ADA’s long-term potential.

Uncertain Implications

While the high transaction volume is undeniable, its exact impact on price remains unclear. Large transactions can represent both buying and selling activity.

Cardano’s Future: A Sea of Opportunity?

The recent developments have sparked excitement, with the potential involvement of whales and the uptick in accumulation offering a cautiously optimistic outlook for ADA’s price. However, the decline in active wallets raises questions about overall investor sentiment.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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