Since the beginning of July, the Cardano blockchain has experienced a period of relative quietness, mirrored by a consolidation in the price of ADA. On-chain transaction data reveals that Cardano whales, who hold large amounts of ADA, have also been relatively quiet since the last week of June. Despite this, there was a recent spike in daily whale inflows, with a notable 1,218% increase in whale activity.
The recent surge in whale inflows could potentially signal the start of an ADA price uptick. Data from IntoTheBlock indicates a significant spike in whale activity, with daily inflows into whale wallets spiking from 14.51 million ADA on July 8 to 110.82 million ADA on July 9. This surge represents a 3815.9% increase in daily inflows over just two days, highlighting a sudden jump in whale activity within the Cardano ecosystem.
The Large Holders Inflow metric, which tracks the amount of tokens entering wallets holding at least 0.1% of the circulating supply of ADA, plays a crucial role in determining price movements. The data indicates that only 0.01% of Cardano addresses fall within the range of holding 10 million to 100 million ADA tokens, yet they control 36.26% of the total coins in circulation. This concentration of tokens in the hands of a few whales gives them significant influence over ADA’s price trends and overall market sentiment.
Whale activity not only directly impacts prices but also plays a crucial role in shaping overall market sentiment. Significant moves by large holders can either boost investor confidence or instigate fear among other whales and retail investors. Recent bearish sentiment saw ADA hit a nine-month low of $0.3211, but it has since rebounded and is now approaching a positive percentage change within a seven-day timeframe. At the time of writing, ADA is trading at $0.3936, representing a 2.25% increase in the past 24 hours.
Following the recent short-term price increase, ADA has broken out of a falling wedge formation on the price chart, potentially setting the stage for a 70% surge above the $1 threshold. On the development front, the Cardano blockchain, which was previously criticized as a “dead coin,” is gearing up to launch an upgrade to its network. This upcoming network enhancement could further fuel positive price momentum for ADA in the near future.
The recent surge in whale activity on the Cardano blockchain has the potential to significantly impact ADA’s price trajectory and market sentiment. With large holders exerting considerable influence over price movements, their actions are closely monitored by investors and analysts alike. As ADA continues to navigate through changing market conditions and network upgrades, the role of whales in shaping the cryptocurrency’s future remains a crucial aspect to watch.