The world’s 8th largest cryptocurrency Cardano (ADA) has been on traders’ radar this year. Since the beginning of the year, the ADA price has surged by +45%.
The reason behind this price surge has been the strong whale activity in Cardano. As per reports, the whale transactions happening on the Cardano blockchain have shot up since the start of February.
The average whale transaction during the first half of February is approximately 1,700 transactions per day valued at $100k or more. This is like five times more than the average 300 transactions per day happening last month in January.
Similarly, whale and shark accumulation is also on the rise ever since the collapse of the crypto exchange FTX. On-chain data provider Santiment reports:
Whale and shark addresses holding 10k to 10m ADA have accumulated 659.53M ADA, which equates to $235.5M. This turnaround coming from the key stakeholders of Cardano is a nice sign.
Furthermore, the on-chain data provider reports that the average trader returns in Cardano have turned negative. Thus, there’s a low risk of buying Cardano (ADA) now since the selling pressure is likely to be lower going ahead.
Some Bad signs for Cardano (ADA)
Santiment’s Mean Dollar Invested Age metric shows that heavy investments done in Cardano continue to sit there without much activity i.e. dormant coins. “Six months ago, the average amount of time coins sat in an address was 267 days. That number has ballooned to 407 days, as circulation continues to struggle,” the report notes.
Also, the total number of unique daily active addresses on the Cardano network has been on a decline. Back in November, the total daily active addresses were 85,000 and this number has dropped to 62,000 addresses per day now.
Although the trader sentiment in Cardano (ADA) is a bit right now, the ADA price could be poised fir rally ahead this month.