Cardano Whales Scoop 120M ADA in One Week: Further Rally Expected?

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As an experienced analyst with over two decades in the financial markets, I find myself intrigued by the recent developments surrounding Cardano (ADA). The massive purchase of 120 million ADA tokens by whales, worth $144M, coupled with the significant increase in whale wallets holding 100M-1B ADA tokens, is a clear sign that these large players see potential in ADA’s future rally.

In the last three days, large investors, often referred to as whales, have purchased approximately 120 million ADA tokens, which at the current price of around $1.15 per token, amounts to roughly $144 million. This move suggests a strong belief among these investors that the value of Cardano (ADA) could increase in the near future. Here are some key statistics:

Based on Santiment’s data, the number of whale wallets containing 100 million to 1 billion ADA tokens grew their holdings from 3.15 billion to approximately 3.27 billion ADA tokens from December 3rd through December 6th.

crypto expert Ali Martinez pointed out that around $100 million worth of ADA was bought by whales on Wednesday, suggesting that major investors are extremely optimistic about the future price increase of this altcoin, even though it had already experienced a rise of over 200% in November.

Cardano TVL Crosses $700M

Additionally, Cardano experienced significant expansion in its network, a possible catalyst for ADA’s impending price increase. At present, its TVL (Total Value Locked) has reached an impressive $735.7 million, marking a substantial rise from its yearly minimum of $200 million. This new high surpasses the previous network record of $494 million, which was set in March 2024.

As a research analyst, I’d like to clarify for those less familiar: Total Value Locked (TVL) signifies the funds locked within DeFi smart contracts on the given blockchain. Essentially, it serves as an indicator of investor trust within the network, suggesting that confidence in the Cardano chain increased notably during Q4 2024.

The expansion of this network didn’t halt at TVL (Total Value Locked). Instead, activity among users skyrocketed by three times as DEX (decentralized exchange) trading volumes reached their peak for the year. As per Artemis data, the volume of transactions on Cardano’s DEX was a mere $1.8M prior to the US elections.

Subsequently, it peaked at an annual maximum of $30 million, although currently stands at $27.3 million (as reported). This represents a 15-fold increase in DEX trading volume over the course of a month. Remarkably, this rise in trading volume can be attributed to a growth in user numbers, as indicated by the number of active addresses.

Significantly, user count tripled from around 30,000 to over 90,000 within the same timeframe, suggesting robust market enthusiasm for ADA. Moreover, there was a strong relationship between the volume of trades on Decentralized Exchanges (DEX) and the price of ADA, which implies that growing network activity could further boost ADA’s upward trend.

ADA Price Action

In the near future, let’s discuss the potential movement of ADA’s price. Analyst Ali Martinez anticipates an approximately 30% increase due to the bullish triangle pattern observed in the coin’s chart.

The ascending triangle formed as ADA consolidated around $1.2 since late November. The pattern always triggers a bullish breakout rally equivalent to the height (base) of the triangle.

If the solid foundations, such as Total Value Locked (TVL) and network expansion, continue to uphold the optimistic viewpoint regarding ADA’s price, then a drop below $1 could contradict the current short-term forecast.

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2024-12-06 13:21