The Cardano blockchain has experienced a period of quietness since the beginning of July, coinciding with a consolidation in ADA’s price. However, recent on-chain transaction data reveals an interesting development in whale activity. Cardano whales, who have been relatively quiet since the last week of June, saw a sudden spike in daily inflows earlier this week. According to IntoTheBlock data, there was a staggering 1,218% increase in whale inflows, which could potentially signal the start of a price uptick for ADA.
The Large Holders Inflow metric from IntoTheBlock shows a significant surge in whale activity on the Cardano blockchain. Following a period of declining daily inflows since July 5, there was a sudden spike in whale addresses receiving a substantial amount of ADA. This spike resulted in a jump from 14.51 million ADA on July 8 to 110.82 million ADA on July 9, marking a 3815.9% increase in just two days. This surge in whale activity is a strong indication of increased interest and potential price movement for ADA.
Whale Influence on Market Sentiment
It is important to note that whale activity not only directly impacts prices but also plays a role in shaping overall market sentiment. Large holders of ADA tokens hold a significant portion of the circulating supply, giving them the power to influence price movements. Their actions can instill confidence or fear among other whales and retail investors, ultimately affecting the market dynamics. Recent bearish sentiment saw ADA hitting a nine-month low of $0.3211, but a rebound has put the token on track to reverse into positive territory in a seven-day timeframe.
As ADA currently trades at $0.3936, up by 2.25% in the past 24 hours, there is anticipation for a potential price surge driven by recent developments. The token has broken out of a falling wedge formation on the price chart, hinting at a possible 70% surge above the $1 threshold. Additionally, on the development side, the Cardano blockchain is gearing up to launch an upgrade to its network. This news comes in the wake of accusations of being a “dead coin,” indicating a renewed interest in the project and its future prospects.
The recent surge in whale activity on the Cardano blockchain has the potential to significantly impact ADA’s price and overall market sentiment. As large holders continue to make moves and influence market dynamics, investors must closely monitor whale activity to gauge potential price movements. With a positive outlook for ADA’s price and upcoming network upgrades, the Cardano ecosystem appears to be in a position of growth and development.
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