Cardano (ADA) has recently seen increased trading activity among major investors. According to data from crypto analyst Ali Martinez, whales holding between 10 million and 100 million ADA have accumulated a total of 160 million ADA since the price drop to 0.91. This group now controls over 1% of the total circulating supply of ADA.
Martinez further noted that during this period, whales have conducted 687 transactions involving over $1 million worth of ADA. This uptick in significant transactions is seen as a potential sign of accumulation by large holders, which could have a positive impact on future ADA price trends.
Market activity and trading sentiment
Market activity is indicative of a broader trend. In the past month, there has been significant growth among addresses holding between 1 million and 10 million ADA, increasing by 67.29%. This increase is the most substantial compared to other wallet categories. Despite this positive trend, the market sentiment remains balanced between bullish and bearish, placing ADA in a relatively neutral position.
Analyzing data from IntoTheBlock, we can see changes in Cardano’s ownership dynamics. Concentration among mid-sized holders has increased by 1.74% in the past month, suggesting growing interest among users who are often viewed as long-term investors. Similarly, retail holdings have risen by 1.19%, indicating heightened activity among smaller investors. The data also shows an even distribution of trading activity between large players, with 95 bulls and 95 bears. This equilibrium suggests a lack of strong momentum, implying that pressure to boost ADA’s price may need to come from other trading groups.
It is worth mentioning that accumulation patterns like these have been observed among Cardano whales historically. Earlier this year, large holders invested $110 million in ADA in anticipation of a significant price rally. Current data indicates a rising demand for ADA, particularly in the last 24 hours, with a 5.43% increase in open interest, totaling $908.24 million. Additionally, ADA has seen its largest single-day net inflow from exchanges in six days, with a substantial net inflow of $21.25 million, highlighting the growing interest in the asset.
Looking ahead, Charles Hoskinson has outlined the platform’s strategic goals for the next three years, including implementing a community constitution and governance structure to transition Cardano into a decentralized, community-driven blockchain.
Analysts are optimistic about ADA’s potential for a rally and have identified key price targets of $1.46 and $1.76 in case of a bullish momentum, representing potential gains of 37% to 92% from its current price of $1.03. With indicators like decreasing selling pressure and increased whale accumulation, ADA seems well positioned for future gains, prompting questions about its resilience during upcoming market rallies.