Cardano (ADA) has recently witnessed significant trading activity among its 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 of whales now controls more than 1% of the total circulating supply of ADA.
Further analysis from Martinez revealed that during this period, whales conducted 687 transactions involving over $1 million worth of ADA. This increase in significant transactions is seen as a potential indication of accumulation by large holders, which could positively impact future ADA price trends.
Market activity and trading sentiment
Market activity also reflects a broader trend. Over the past month, there has been noticeable growth among addresses holding between 1 million and 10 million ADA, which increased by 67.29%. This increase is the most significant compared to other wallet categories. Despite this positive trend, the market remains balanced between bullish and bearish sentiment, placing ADA in a relatively stable position.
Analyzing data from IntoTheBlock, we can observe shifting dynamics in Cardano’s ownership. Investor concentration among mid-sized holders increased by 1.74% over the past month, suggesting a growing interest among users who are often viewed as long-term investors. Similarly, retail holdings have increased by 1.19%, indicating a higher level of activity among smaller investors. The data also shows an even distribution of trading activity among large players, with 95 bulls and 95 bears. This equilibrium reflects a lack of strong momentum, suggesting that pressure to raise ADA’s price may need to come from other trading groups.
It is noteworthy that accumulation behaviors like these have historically been observed among Cardano whales. For instance, earlier this year, large holders invested $110 million in ADA, anticipating a significant price rally shortly. Current data indicates a rising demand for ADA, especially in the last 24 hours, where open interest saw a 5.43% increase, reaching a total of $908.24 million. Additionally, ADA has experienced its largest single-day net inflow from the exchange in six days, with a significant net inflow of $21.25 million, underscoring the growing interest in the asset.
Looking ahead, Charles Hoskinson has outlined the platform’s strategic goals for the next three years, which include implementing a community constitution and governance structure aimed at transforming Cardano into a decentralized, community-driven blockchain.
Analysts are optimistic about ADA’s potential for a rally and identify key price targets of $1.46 and $1.76 if a bullish momentum occurs, translating to potential gains of 37% to 92% from its current price of $1.03. With signals such as diminishing selling pressure and increased whale accumulation, ADA seems well positioned for future gains, prompting the question of its resilience during the upcoming market rallies.