Since the beginning of July, the Cardano blockchain has experienced a period of relative quiet, mirrored by a consolidation in the ADA price. On-chain transaction data reveals that Cardano whales have also subdued their activities since the end of June. Daily inflows from these large holders have remained steady below 5 million ADA throughout the month, except for a notable spike earlier this week. Data from IntoTheBlock shows a remarkable 1,218% increase in daily whale inflows, a signal that could herald a potential rise in ADA’s price.
The metric tracking large holders’ inflows into the Cardano blockchain indicated a 1,220% surge, marking a significant deviation from the declining trend observed since July 5. The spike was particularly pronounced at the week’s start, with inflows into whale addresses skyrocketing from 14.51 million ADA on July 8 to 110.82 million ADA on July 9. This dramatic increase is stark compared to the 2.83 million ADA recorded on July 7, representing a staggering 3,815.9% rise in daily inflows over just two days.
The Large Holders Inflow metric monitors the amount of ADA tokens entering wallets holding at least 0.1% of the total circulating supply, which currently stands at 35.87 billion ADA tokens, according to Coinmarketcap. This means that for a wallet to be classified as belonging to a large holder or whale, it must contain a minimum of 35.87 million ADA tokens.
The distribution of ADA holdings shows that a mere 0.01% of all Cardano addresses hold between 10 million and 100 million ADA tokens. Despite their small number, these addresses control a significant 36.26% of the total coins in circulation, giving them considerable influence over overall price movements.
Whale activity can impact more than just prices; it also affects market sentiment. Movements by these major holders can bolster confidence or spread fear among other whales and retail investors alike. Recent bearish sentiment had pushed ADA down to a nine-month low of $0.3211, but the cryptocurrency has since rebounded. Currently trading at $0.3936, ADA’s price has increased by 2.25% in the past 24 hours. This short-term price rise has pushed ADA out of a falling wedge formation on the price chart, potentially setting the stage for a 70% surge above the $1 threshold.
On the development front, the Cardano blockchain is gearing up for a network upgrade, countering accusations of being a “dead coin.” This upcoming upgrade could further influence the market’s dynamics and ADA’s trajectory.
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