Cardano (ADA) is finally seeing some action again, as data from the market intelligence platform IntoTheBlock shows that there has been a notable spike in whale activity. This has revived hopes that the ADA token could soon record a significant price surge due to this development.
Cardano Whales Move $13.84 Billion
IntoTheBlock mentioned in an X (formerly Twitter) post that Cardano whales have carried out an average large transaction volume of $13.84 daily in the last seven days. This translates to a total transaction volume of about $96.88 billion during this period. To show how massive this is, IntoTheBlock added that this transaction volume is a third of Bitcoin’s current volume while it is 5x and 16x that of Litecoin and Dogecoin’s volume, respectively.
These whales are believed to be taking advantage of Cardano’s recent price dips to load their bags in anticipation of a price surge from the crypto token. Data from CoinMarketCap shows that Cardano is down over 11% in the last seven days, suggesting a trend reversal may be imminent.
The return of these whales could also contribute to this imminent price surge, considering that they play a massive role in price discovery. On-chain analytics platform Santiment noted that a spike in Cardano whale activity “historically correlates with potential price reversals.” The platform also revealed that these whale transactions are the highest since November 8th.
Besides whale activity, a couple of other on-chain metrics paint a bullish outlook for Cardano, with data from IntoTheBlock showing the Concentration and Bid-Ask Volume Imbalance metric flashing a bullish signal. Meanwhile, although most ADA holders are currently not in profit, they may be forced to add to their positions to break even once Cardano sees a relief pump.
ADA’s Price Action From A Technical Analysis Perspective
Dan Gambardello, the founder of Crypto Capital Venture, noted in an X (formerly Twitter) post that Cardano is currently coming out of its overbought condition, which suggests that a move to the upside is imminent. He remarked that a further dip might not be a thing as that could translate to the crypto token (just like the broader crypto market) entering an oversold environment where it is ready to “pump like crazy.”
Meanwhile, crypto analyst Trend Rider recently stated that Cardano just needs to hold above $0.52 for a few weeks, and then a parabolic move to the upside will occur. He claimed the same thing happened in 2020 when Cardano experienced a “mega bull run” after it managed to hold above a crucial support level.
At the time of writing, Cardano is trading at around $0.45, up over 1% in the last 24 hours according to data from CoinMarketCap.
ADA price at $0.429 | Source: ADAUSDT on Tradingview.com
Featured image from BrightNode, chart from Tradingview.com
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