Cardano Sees 1,218% Spike In This Major Metric, Will ADA Price Follow?
12 July 2024 - 10:30AM
NEWSBTC
The Cardano blockchain has been relatively quiet since the
beginning of July, alongside an ADA price consolidation. As per
on-chain transaction data, Cardano whales have also been relatively
quiet since the last week of June. Daily whale inflows have
steadied under 5 million ADA since the beginning of the month, save
for a recent spike earlier in the week. Particularly, on-chain data
from IntoTheBlock indicate a recent 1,218% spike in daily whale
inflows, a development that may signal the start of an ADA price
uptick. Cardano Sees 1,218% Spike In Major Metric According to the
Large Holders Inflow from IntoTheBlock, the Cardano blockchain
witnessed a 1,220% surge in whale inflow. As noted earlier, daily
inflows into whale wallets have been on a decline since July 5.
However, a surge in activity at the beginning of the week resulted
in the number of inflows into whale addresses spiking from 14.51
million ADA on July 8 to 110.82 million ADA on July 9. This
increase is more noticeable compared to the 2.83 million ADA
recorded on July 7, which represents a 3815.9% increase in daily
inflows over two days. Related Reading: Ethereum Whale Sparks
Sell-Off Rumors With 11,215 ETH Coinbase Deposit The Large Holders
Inflow metric tracks the amount of tokens entering into wallets
holding at least 0.1% of the circulating supply of ADA. According
to data from Coinmarketcap, there are currently 35.87 billion ADA
tokens in circulation. Meaning each wallet being tracked by the
metric has to possess at least 35.87 million ADA tokens before they
can be classified as large holders or whales. According to
the ADA holdings distribution, only 0.01% of the total Cardano
addresses are within the range of those possessing 10 million to
100 million ADA tokens. However, they control a majority (36.26%)
of the coins in circulation, which gives them a say in the overall
price movement. Will ADA Price Follow? Whale activity doesn’t
just affect prices directly; it can also sway overall market
sentiment. When some of these big players make moves, it can either
boost confidence or spread fear among other whales and retail
investors. Related Reading: Bitcoin Forms Double Top Pattern
On 4-Hour Chart, Analyst Reveals Targets Recent bearish sentiment
saw ADA hit a nine-month low of $0.3211, but it has rebounded and
is now on the verge of reversing into a positive percentage in a
seven-day timeframe. At the time of writing, ADA is trading at
$0.3936, which has been up by 2.25% in the past 24 hours. As a
result of this short-term price increase, ADA has been driven out
of a falling wedge formation on the price chart, which might
ultimately result in a 70% surge above the $1 threshold. On the
development side, the Cardano blockchain, which was recently
accused of being a dead coin, is about to launch an upgrade to its
network. Featured image created with Dall.E, chart from
Tradingview.com
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