Cardano (ADA) is currently witnessing a surge in transaction volume, comparable to that of Ethereum. This rise in transaction volume, as reported by the market intelligence platform IntoTheBlock, indicates a wave of accumulation among Cardano’s large holders. In the last 24 hours, Cardano recorded a substantial transaction volume of $6.7 billion, almost on par with Ethereum’s $6.71 billion. This surge in transaction volume suggests that Cardano whales have been actively adding tokens to their positions, especially during the current market dip, in anticipation of a price rally for ADA.
Whales Increase Holdings, Promoting Bullish Outlook
Data from IntoTheBlock confirms a significant increase in large holders’ net flow over the past seven days, signaling a bullish outlook for the Cardano ecosystem. Additionally, on-chain analytics platform Santiment reports that Cardano whales, wallets holding between 100,000 and 10 million ADA tokens, collectively purchased 120 million ADA tokens between July 17 and August 1. These wallets now hold over 5.69 billion ADA tokens. This increase in whale activity could potentially influence market prices and lead to a substantial price surge for ADA, providing much-needed momentum for the cryptocurrency that has underperformed this year.
Potential for Price Rally Despite Shorting
Despite Cardano’s year-to-date loss of over 35% and its status as one of the most shorted altcoins, Santiment believes that a significant turnaround for the crypto token is possible. The heavy shorting of Cardano increases the likelihood of liquidations that could fuel a price rally, acting as “rocket fuel” for ADA. Despite several bullish developments within the Cardano ecosystem, including clarification by the US Securities and Exchange Commission (SEC) that ADA is not considered a security, Cardano has yet to experience a substantial rally. The ongoing Chang Hard Fork, signaling Cardano’s transition to the Voltaire era and its advanced governance system, has also failed to have a significant impact on ADA’s price movement.
The recent surge in transaction volume and whale activity within the Cardano ecosystem are positive indicators for the cryptocurrency’s future. The accumulation of tokens by large holders and the potential for price rallies despite shorting suggest that ADA may be on the verge of a significant turnaround. With ongoing developments such as the Chang Hard Fork and regulatory clarity from the SEC, Cardano has the potential to rebound from its underperformance and emerge as a strong player in the cryptocurrency market.
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