On-chain Activity Shows Cardano Ready For 30% Plus Bullish Move

Cardano Whale Activity Spikes, as ADA Registers Largest $100K+ Transactions Since May.

This resurgence of whale activity has become predominant as ADA has rallied by 61% since the start of the year.

Cardano (ADA) is seeing a massive uptick in whale activity, as whale transactions worth $100K+ have drastically increased since January 30, with up to 36 more addresses holding between 1 million and 100 million tokens added to the network since the beginning of this year.

In the past seven days, whale transactions involving $100K+ worth of ADA have increased by 296% to 8,885, according to data from behavior analytics service Santiment which first highlighted the immense uptick. These transactions picked up from the 2,243 value observed in the week leading to January 30.

? #Cardano whale numbers have risen in 2023, and large transactions have notably broken out. The last time there were this many $100k+ $ADA transactions was in May, & its price jumped +36% from the beginning of that week until its local top in early June. https://t.co/GTuBl9DKWA pic.twitter.com/9GSnMqlomB

— Santiment (@santimentfeed) February 7, 2023

According to Santiment, the last time Cardano witnessed such a cluster of $100K+ transactions was last May. Further data suggest that ADA’s price skyrocketed by up to 36% from the start of that week until it reached the peak of $0.6661 on June 8, 2022.

In addition to the increase in $100K+ whale transactions, ADA accumulation has increased among proponents as deep-pocketed investors look to augment their holdings. Santiment revealed that addresses holding between 1 million and 100 million ADA have increased by thirty-six since the start of 2023. These addresses are now 2,844 in number at the time of reporting.

These metrics have been observed when ADA has appreciated by 61% since the beginning of the year. An increase in whale interest and large transactions are key indicators of market activity and investor confidence. This often signals a resurgence of market demand which could potentially support the asset’s price action, as noticed last May.

Whale interest fueled by favorable developments

Santiment also highlighted an increase in crucial ADA shark and whale addresses last Saturday, revealing that addresses with balances between 100K and 100M ADA tokens now hold the most tokens they’ve ever owned since November 8. These addresses have amassed a whopping 405.85M ADA since January 1.

The observable surge in whale interest has been attributed to several favorable developments surrounding the Cardano ecosystem. Notably, after the launch of the much-anticipated stablecoin DJED, over 1.85 million asset units were minted in just two days. Bitrue also introduced DJED and SHEN staking shortly after the launch.

Meanwhile, ADA is trading for $0.3971 at the time of reporting, up 1.73% in the past 24 hours. After conquering the $0.39 zone today, the asset is currently gunning for the $0.40 territory. Analyst Ali previously highlighted a crucial ADA support formed at the $0.37 zone due to a massive purchase of 4.4B ADA between $0.365 and $0.376 by 92K addresses.