Over the past month, the Cardano blockchain has experienced a period of relative quietness, accompanied by a consolidation in the price of ADA. However, recent on-chain data has indicated a significant spike in daily whale inflows, which could potentially signal the start of an uptick in the price of ADA. This surge in whale activity has the potential to impact not only price movements but also overall market sentiment.
According to recent data from IntoTheBlock, there has been a 1,218% spike in daily whale inflows into the Cardano blockchain. This surge in activity has seen the number of inflows into whale addresses increase significantly over a two-day period, with inflows spiking from 14.51 million ADA on July 8 to 110.82 million ADA on July 9. These large holders, who possess at least 0.1% of the circulating supply of ADA, have a substantial influence on the overall price movement of the token.
Impact on Price Movements
The recent bearish sentiment in the market saw ADA hit a nine-month low of $0.3211. However, with the surge in whale activity and the subsequent increase in price, ADA is now trading at $0.3936, representing a 2.25% increase in the past 24 hours. This short-term price increase has pushed ADA out of a falling wedge formation on the price chart, potentially paving the way for a 70% surge above the $1 threshold.
Whale activity not only directly affects price movements but also has the ability to sway overall market sentiment. As large holders make moves in the market, it can either boost confidence among other investors or spread fear. With only 0.01% of total Cardano addresses holding between 10 million to 100 million ADA tokens but controlling 36.26% of the circulating supply, these whales have a significant say in the direction of price movements and market sentiment.
On the development side, the Cardano blockchain, previously accused of being a “dead coin,” is set to launch an upgrade to its network. This development, coupled with the recent surge in whale activity and the positive price movement of ADA, could potentially lead to further upticks in the price of the token.
The recent spike in whale activity within the Cardano blockchain has the potential to significantly impact price movements and overall market sentiment. As large holders continue to make moves in the market, it will be interesting to see how this whale activity shapes the future price trajectory of ADA. With ongoing developments in the Cardano network, the upcoming months could see further volatility and price surges in the ADA token.
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