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Ali, a crypto analyst, observes that Cardano has seen a surge in whale activity in recent months.
Citing on-chain data, Ali noted that in the last three months, there has been a significant increase in large transactions, that is, ADA transactions over $100,000. This value has regularly reached new highs.
According to Ali, the surge points to growing interest in ADA from institutional players and whales, which is frequently a precursor to price spikes.
This is because whale activity, as indicated by a surge in large transactions, can have a substantial impact on an asset's price and sentiment, depending on whether these large holders are buying or selling.
Tomiwabold OlajideIn the case of Cardano, the recent increase in whale activity corresponded with growth in the ADA price, which is higher across multiple time frames.
According to CoinGecko data, Cardano was trading higher in the last 30 days by 25.2%, and it has increased by 27.2% year to date.
At the time of writing, ADA was up 4.17% in the last 24 hours to $0.412, the eighth-largest cryptocurrency has likewise gained 7.08% in the past seven days.
The increase in whale activity, coupled with the general uptrend in the crypto market, might propel Cardano (ADA) to new highs, although the possibility remains unknown.
What's next for ADA price?
Buyers were able to break above the $0.41 barrier that stalled ADA's advance in mid-November during today's trading session. ADA reached intraday highs of $0.415 on Monday but was unable to surpass this level.
All eyes are currently on a sustained break above this critical level, which could allow the bullish momentum to intensify, enabling the ADA pair to soar to $0.42 and then to $0.46.
If the price falls below the $0.37 support, it indicates that short-term traders are taking profits. ADA may then fall to $0.34, where bulls might attempt to halt the decline.
Yuri Molchan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov