An interesting Cardano (ADA) on-chain metric has linked its recent growth rally to a significant drop in wallets holding a small amount of the cryptocurrency.
The data, presented by crypto analytics platform Santiment, showed that the mysterious loss of small wallets on November 17 might account for the turning point in price the protocol recorded afterward.
According to the insight shared by Santiment, the price of Cardano has jumped by about 65% since this mysterious address exodus, with 98.1% of the addresses involved holding 1 to 10 ADA.
At the moment, Cardano’s price still remains in the green, trading at $0.5947 after surging 9.41% in the past 24 hours. The elevated price outlook has pushed its market cap by the same rate to $20,992,393,703, with trading volume jumping 7.2% to $1,312,393,993.
Impressive Cardano Discovery
Cardano boasts a balanced whale and retail holder activity. Santiment displayed its discovery using a chart spanning September 11 to date.
From at least September 25 until November 17, the number of addresses holding 10 to 100 ADA stayed relatively flat until it drastically slumped. Per Santiment’s data, 34,900 addresses within this category were lost. This class of addresses stayed flat until earlier today when Santiment collected the data.
? #Cardano had a sudden loss of small wallets back on November 17th, 98.1% of which were wallets holding between 1-10 $ADA. A drop of addresses this size or smaller often indicates capitulation, and a potential price turning point. $ADA is +65% since. https://t.co/MyjAXQhr7m pic.twitter.com/C9nvKbfDC8
— Santiment (@santimentfeed) December 12, 2023
Generally, the number of addresses holding at least 0 ADA rose slightly from September 23 to November 17. It also fell at this point but slightly less than the smallholder wallet category.
Overall, as of today, the Cardano protocol boasts 4.46 million wallets holding at least 0 ADA, while the number of addresses with 10 to 100 ADA comes in at 934,630.
Cardano Price Projections
Despite the positive shifts in Cardano’s on-chain metrics and accompanying price jumps, the coin’s price still lags behind its competitors, including XRP. Despite this reality, many market analysts and AI algorithms predict a bullish future for Cardano.
One of the latest predictions came from Tyler Strejilevich, who predicted that ADA could soar to $33 or about 6,000% over the next 66 weeks. He posited that ADA could pull off this feat if it gets a bullish weekly cross for the first time since June 2020.