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Cardano (ADA) whales are in a frenzy, as they have continued to accumulate the coin over the last four months. Data shared by market intelligence platform Santiment shows that Cardano wallets holding 10 million ADA or more have hit 424. This suggests bullish confidence in the asset despite its continued volatility on the broader crypto market.
Cardano whale wallets reach four-month high
Notably, 424 wallets is a four-month high and represent an increase of 5.2% in the last nine weeks. The figures indicate that large investors are aggressively accumulating ADA and remain confident of the asset’s long-term value even given current fluctuations.
Given the accumulation pattern, it appears that these whales are taking advantage of Cardano’s low price to increase their portfolio. The activities of the whales have impacted the price outlook of ADA since it bottomed on Feb. 5. This implies that large investors are already exerting their influence on the price.
Santiment urged market participants to monitor whether the number of Cardano whales continues to increase above the current 424 despite the price hovering around $0.25. It suggests that continued growth will create a "larger bullish divergence" for the asset.
Cardano’s price fluctuation persists, with the coin dropping from a peak of $0.2595 to a daily low of $0.2426. As of this writing, Cardano exchanges hands at $0.2435, which represents a 4.65% decline in the last 24 hours.
The trading volume has also suffered a decline by 15.13% to $394.96 million as a result of broader capital rotation out of the altcoin sector. Cardano needs to hold above the $0.24 price level to consolidate for a possible rebound when appetite improves.
However, if the $0.24 level is breached, then ADA risks a test of the $0.22 support as selling pressure could drag prices down.
Can whale accumulation spark retail buying momentum?
The uptick in the number of Cardano whales accumulating the coin is a potential catalyst to trigger retail traders to start buying. If this happens, it might cause Cardano volume to explode, impact price positively and support ADA’s comeback push.
Meanwhile, in a push for adoption, EMURGO's chief executive officer Phillip Pon has signaled that partnership talks are on with global payments giant Mastercard. If the talks conclude on a positive note, Mastercard could integrate Cardano into its list of options for crypto payments.
That integration and use of ADA in everyday transactions might have an influence on price outlook as utility increases.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
