As reported by crypto analytics portal Santiment, the activity of large investors, referred to in the community as whales, related to Cardano (ADA) has increased significantly since the beginning of 2023. In fact, the number of transactions above $100,000 with ADA is so high that after the last time such a thing was seen, the price of Cardano's native token rose by almost 40% within weeks.
🐳 #Cardano whale numbers have risen in 2023, and large transactions have notably broken out. The last time there were this many $100k+ $ADA transactions was in May, & its price jumped +36% from the beginning of that week until its local top in early June. https://t.co/GTuBl9DKWA pic.twitter.com/9GSnMqlomB
— Santiment (@santimentfeed) February 7, 2023
Digging deeper into the data, the number of addresses holding between 1 million and 100 million ADA has increased by 36 since the start of the year. The price of the token reacted accordingly, showing an increase of 59% in just over a month. Now, the scenario is unfolding in such a way that the price of Cardano's native token could double from the beginning of the year, if the history with large transactions repeats itself.
Cardano (ADA) price action
ADA is currently trading at $0.4, having failed after a series of attempts to move beyond this resistance level. At the same time, however, the price of the Cardano token is not in a hurry to fall as it usually does after unsuccessful resistance assaults, which leaves the chance for a continuation of the positive trend.
In addition to the technical reasons, there are also fundamental ones. Thus, in the coming weeks, the Cardano ecosystem is expected to see an update aimed at increasing interoperability and cross-chain compatibility.
Tomiwabold Olajide
Godfrey Benjamin
