Despite sluggish price performance, significant activity has been detected among influential crypto investors who have been steadily enlarging their holdings of this altcoin, hinting at a potentially more promising future for Cardano.
Notably, crypto whales and sharks – big market players that have the biggest impact on price movements – have been continuously accumulating ADA tokens.
Crypto whales and sharks have bought $116M ADA since May
In particular, investors that hold between 100,000 and 10 million ADA now hold the highest number of this cryptocurrency since September 2022, Santiment data showed on August 8. These wallets bought more than $116 million in ADA since May 21, indicating a notable change in sentiment toward the eight-largest crypto asset.
Furthermore, on-chain transaction volume on Cardano has been constantly surging almost every week for the past 6 months. ADA transaction volume currently stands at over $67 billion, the highest since September 2021, Santiment added.
Cardano price analysis
At the time of writing, ADA was trading at $0.29, down 0.39% in the past 24 hours, and more than 4.5% over the past week.
On the month, the crypto token is slightly in the green, up around 1.4%.
Even ADA’s year-to-date gains are weak when compared to the rest of the altcoins, with Cardano’s cryptocurrency gaining just 16.5% since January 1.
Evidently, ADA price has traded mostly lower in recent weeks after the big spike in price action in mid-July, inspired by the Ripple vs SEC update. However, the coin hasn’t managed to hold onto these gains with the price action trading below $0.30 again.
On the upside, the resistance is located around $0.32 — consisting of the ascending trend line that was broken as support and the 100-day moving average (MA). If the token clears this barrier, the next noteworthy resistance lies at around $0.35.
On the downside, the key support is located around the $0.24 handle.
Although ADA’s performance has lagged behind the wider market, the increasing transaction volume and consistent accumulation by major investors indicate a notable uptick in bullish sentiment.
With continued strategic accumulation by significant players in the crypto realm, including whales and sharks, the prospect of a price breakout for Cardano gains substantial traction. This heightened momentum underscores the potential for a notable upward shift in ADA’s market trajectory.
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