Cardano (ADA) is seeing impressive on-chain activity that has pushed its price by 7% to almost its 2023 high.
With the rally, ADA is now worth $0.4545 with a market capitalization of $15,524,358,829. The coin’s trading volume complements this growth, soaring by 26.23% to $15,524,358,829.
The bullish growth of Cardano comes despite the protracted losses some altcoins are recording today. According to crypto analytics provider Santiment, the current resurgence in Cardano might be fueled by a hoard of small traders selling off their bags to the whale holders.
? #Cardano's market value is +7% today, despite the majority of #crypto dropping Wednesday. Total $ADA addresses have been shrinking, which is a good sign. Typically, declining wallets is a sign of small holders capitulating & selling to whales at a loss. https://t.co/7NeeZ6pRph pic.twitter.com/FAsL2AEj9N
— Santiment (@santimentfeed) December 6, 2023
Cardano Shift in Ownership Trends
Per the Santiment data, the shift in ownership of ADA is a positive development for Cardano.
The price of ADA has grown concerning the transfer of ADA from smallholders to whales. Per the chart shared, funded Cardano wallets with at least 0 balance hit an almost 4-month peak around November 18 before tanking significantly in the period between November 14 and November 22.
In this period, a total of 32.1K ADA wallets were liquidated. This liquidation was also recorded in the three days leading to December 7, where a total of 223 ADA wallets were liquidated. A common trend observed by Santiment was that some of the wallets selling did so at a loss, a move that is ultimately beneficial to the whales.
What Comes Next for ADA?
Intrigued by the bullish move in ADA, top market analyst, Ali Martinez highlighted how the coin reflects a similar growth pattern recorded in the 2018 – 2020 trajectory, discounting the COVID-19 era.
#Cardano is on track! ✅$ADA price movement is echoing its 2018-2020 trajectory, minus the COVID-19 downturn. If this pattern holds, we could see #ADA punching through the $0.45 resistance soon.
What's next? A potential rally to $0.75 by late December! https://t.co/aJ05l0sx3P pic.twitter.com/GJOPU6TfM7
— Ali (@ali_charts) December 7, 2023
While volatility is still a major consideration, Martinez confirmed that if the historical patterns hold, it may breach the $0.45 resistance level. However, this is not the ultimate target for ADA, as Martinez, alongside other analysts, believes a push toward the $0.75 by late December cannot be ruled out.
If achieved, the $0.75 price will be the biggest ADA valuation since May 2022.