Cardano Sees 1,218% Spike In This Major Metric, Will ADA Price Follow?

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As an experienced analyst, I’ve closely monitored the Cardano blockchain and its native token ADA for quite some time. Based on recent on-chain data and market trends, I believe that the 1,218% spike in whale inflows could be a significant development that might lead to an ADA price uptick.

The Cardano blockchain has seen decreased activity, along with a stabilization in the price of Ada, since early July. According to transaction data, large Cardano holders or “whales” have also been less active since late June. The daily inflow of Ada to these whale addresses has remained below 5 million ADA for the most part this month, except for a significant increase earlier in the week. Notably, data from IntoTheBlock reveals a substantial surge of 1,218% in daily whale inflows, which could potentially foreshadow an upward trend for Ada prices.

Cardano Sees 1,218% Spike In Major Metric

Based on data from IntoTheBlock’s Large Holders Inflow, the Cardano blockchain experienced a significant jump of approximately 1,200% in whale transactions between July 8 and July 9. Previously, there had been a downward trend in daily whale inflows since July 5. However, this trend was disrupted by heightened activity during the start of the week, causing the number of ADA tokens transferred to large wallets to surge from 14.51 million on July 8 to 110.82 million on July 9. This two-day increase represents a remarkable 3,816% rise in daily whale inflows compared to the 2.83 million ADA tokens recorded on July 7.

As a researcher studying the flow of ADA tokens, I would describe the Large Holders Inflow metric this way: This metric focuses on the quantity of ADA tokens moving into wallets that represent a significant portion of the total circulating supply. With approximately 35.87 billion ADA tokens in circulation according to Coinmarketcap, any wallet being monitored by this metric must hold at least 35.87 million ADA tokens – which equates to 1% of the total circulating supply. Consequently, these wallets are classified as large holders or ‘whales’ within the context of this metric.

As a crypto investor following the Cardano market closely, I’ve noticed an intriguing distribution of ADA holdings. Specifically, a mere 0.01% of all Cardano addresses hold between 10 million and 100 million ADA tokens. Yet, these large holders wield significant influence over the coin’s price dynamics, controlling a substantial 36.26% of the circulating supply.

Will ADA Price Follow?

As a researcher studying financial markets, I have observed that the actions of large whale investors can significantly influence market sentiment beyond just affecting prices directly. When these influential entities make trades, they can instill confidence in other major players and retail investors, leading to a positive market reaction. Conversely, their moves can also spread fear among market participants, resulting in negative sentiment and potentially causing market downturns.

I’ve analyzed the trend of ADA, and just a few days ago, it reached a nine-month low of $0.3211 due to bearish sentiment. However, there has been a notable rebound since then, with ADA currently trading at $0.3936, marking a 2.25% increase in the last 24 hours. This short-term price rise has enabled ADA to break free from the falling wedge formation on the chart, which could potentially lead to an impressive surge of up to 70%, pushing its value above the $1 threshold.

As a Cardano investor, I’m excited to share that our blockchain is set to undergo a significant upgrade soon. Previously, there were concerns and accusations labeling it as a “dead coin.” However, this perspective is about to change. The development team is working diligently on enhancing the network, ensuring its long-term growth and sustainability.

Cardano Sees 1,218% Spike In This Major Metric, Will ADA Price Follow?

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2024-07-12 03:40