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The Cardano (ADA) blockchain has witnessed an outstanding surge in the number of large transactions conducted on the platform. Specifically, in just 24 hours, volume from large ADA holders rose to more than 17 billion units, the largest recorded volume in a single day this week.
Surge in ADA whale transactions
IntoTheBlock, an on-chain analytical platform, labels large transactions as those exceeding $100,000. This means the volume of transactions above $100,000 increased to 17.78 billion within a day.
Arman ShirinyanAlso, the rise of large transactions represents the number of whales and institutional players holding the ADA token. Usually, rising interest in a token from institutional holders depicts confidence in its future. For ADA, the 17.9 billion 24-hour volume could signal an imminent rise in the price of the cryptocurrency.
Recent updates such as the emergence of the Cardano Chang Upgrade may have ignited higher expectations for ADA. These large investors could be banking on this upgrade to fuel higher prices for ADA, thus increasing their investments.
Additionally, there is ongoing speculation that Cardano could be the next crypto to bag approval for a spot Exchange-Traded Fund (ETF) following the launch of a spot Ethereum ETF. These investment vehicles are seen as a safer option for participants in the traditional finance sector. Rising interest from them could lead to increased adoption, which could trickle into the price of ADA.
Current Trends on ADA
Meanwhile, a smaller number of ADA investors are currently making profits as against those out of profit. IntoTheBlock data reveals that 32.77% of addresses (1.47 million) holding ADA are making money at the current price of $0.4149. On the other hand, 65.83% of holders are currently out of profit.
Gamza KhanzadaevAs of this writing, the price of ADA experienced an increase of 5.9% in the past day. The next critical support level now lies in $0.42 territory. Exceeding this threshold may cause a further price rise for ADA. On the contrary, a fall below this level may cause painful shedding for the token.
Dan Burgin
Tomiwabold Olajide