- Cardano whale wallets have increased their holdings by 11% over the past 30 days despite being at a loss.
- The number of ADA holders has stabilized at around 4.47 million, indicating no significant influx of new investors.
Cardano (ADA) has shown a remarkable surge in its price over the past 24 hours, currently trading at $0.4779, marking a 4.96% increase. Despite a period of market volatility, Cardano maintains its position as the tenth-largest cryptocurrency with a market cap of $16 billion. However, the trading volume in the last 24 hours has increased by 20%, totaling $464 million. In recent developments, Cardano whale wallets have shown a significant increase in their holdings, signaling an accumulation trend among large holders.
Whale Wallets Accumulate More ADA
A detailed analysis of Cardano’s token supply distribution has highlighted a noteworthy shift. Wallets holding between 100 million and 1 billion ADA tokens have increased their holdings by approximately 11% over the last 30 days. This group of whale wallets now collectively holds around 6.5% of the total ADA supply. This accumulation suggests a strategic approach by large holders, indicating a long-term belief in the value of Cardano.
Conversely, the largest holders, those with more than 1 billion ADA, have shown a different trend. Their accumulation has tapered off, with these holders neither significantly increasing nor reducing their ADA holdings. This behavior suggests a wait-and-see approach, reflecting a cautious stance amidst current market conditions.
Despite the accumulation of whale wallets, the overall number of ADA holders has remained relatively stable. As of now, the number of ADA holders stands at approximately 4.47 million. This figure has shown little change since January, with only a brief increase to around 4.48 million in February before reverting to current levels. This stagnation indicates a decline in new entrants into the Cardano market, possibly due to prevailing market uncertainties.
The “Global In/Out of the Money” metric provided by IntoTheBlock offers additional insights into Cardano’s profitability. Holders who acquired ADA at prices between $0.000006 and $0.467903 are currently “In the Money,” experiencing profits. Conversely, those who bought at higher prices, ranging from $0.467905 to $2.97, are “Out of the Money” and currently facing losses. As more investors hold onto their ADA in anticipation of higher prices, the accumulation phase could lead to increased scarcity, driving up the price as demand outstrips supply.
Breakout Fuels Price Surge
According to Javon Marks, a crypto analyst and strategist, ADA has surged by an impressive 222% after breaking through a critical resistance level. This bullish trend has sparked optimism among investors, with predictions of further significant growth for ADA.
$ADA (Cardano) and a 15X
Prices of ADA showed major progress since breaking the resisting trend, climbing roughly +222% towards its first target at $2.7709 and the recent pullback could be strengthening them for even more climbing!
With this breakout holding, another +462%… https://t.co/r5qOA2trtV pic.twitter.com/lQAzOo8krF
— JAVONMARKS (@JavonTM1) May 10, 2024
Marks’ analysis attributes ADA’s recent price movement to a breakout from a key resistance level. This breakout led to an initial price target of $2.7709, but a pullback followed the surge. Such pullbacks are common and can indicate market consolidation or correction. Marks suggests that this pullback may ultimately benefit ADA by strengthening it for further upward movement.
Marks outlines a two-part upward trajectory for ADA. The first phase anticipates a potential increase of 462%, which could push the price back to around $2.70. Following this, a more ambitious target of $7.80 is projected, representing a 1500% increase from current levels.
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