The price of Cardano’s native token, $ADA, has risen by more than 10% so far this year, just as whales on the cryptocurrency’s network have begun to accumulate again.
Addresses holding between 1 million and 100 million $ADA (worth around $270,000 and $27 million at the time of writing), according to on-chain analytics firm Santiment, could be a key validator to watch for a potential price breakout.
These whales are thought to have the ability to significantly influence cryptocurrency prices through their activity, and after dumping over 560 million $ADA in the final two months of 2022, they have resumed accumulating this year, adding 217 million tokens to their stash so far.
It is important to note that the actions of a group of individual investors should not be interpreted as a definitive indicator of market direction, as the price of any asset is ultimately determined by supply and demand dynamics.
According to CryptoGlobe, the cryptocurrency community has set a bullish price target for $ADA this month, presumably in response to the network’s growing adoption. According to the consensus of nearly 3,400 cryptocurrency community members, the smart contract platform’s price will be $0.495 by the end of January, representing an 83% increase from the current $0.27 level.
It’s important to note that the cryptocurrency community’s predictions may never come true. According to the platform, the community’s historical accuracy is slightly higher than 41%, with recent data indicating that it was around 60% in September and October 2022, with a peak of 6.8% in December.
According to Santiment, an on-chain analytics firm, Cardano may be “severely undervalued.” According to its findings, both shark and whale addresses (holdings ranging from 100,000 to 10 million tokens) have been actively accumulating ADA over the last six weeks.
According to CryptoCompare’s latest Asset Report, following the collapse of FTX, there was a rising trend in users moving their assets away from centralised cryptocurrency platforms and toward decentralised solutions and self-custody.
According to CryptoCompare, the move resulted in an increase in average daily active users on the smart contract platform. Cardano’s daily active users increased 15.6% to 75,800 last month, the highest number since May.
Similarly, monthly transactions on the Cardano network increased by 5.34% to 2.32 million last month, the highest volume since April.