Cardano Whales Remain Optimistic
Despite the cryptocurrency market undergoing a recent correction, Cardano ($ADA) whales have continued to accumulate, signaling their belief in the project’s long-term prospects. Over the past week, the total market capitalization of the cryptocurrency sector has fallen by around 3%, with approximately $30 billion leaving the space. However, according to on-chain analytics firm Santiment, Cardano wallets holding a balance of 100,000 or more ADA have reached a 16-month high of 25,294. The cryptocurrency’s price has dropped 35% from its peak this year, currently trading at $0.28.
Moreover, in addition to Cardano, Santiment has pointed out unexpected trading volume spikes in other altcoins, including the meme-inspired cryptocurrency Shiba Inu ($SHIB) and the innovative contract platform Solana ($SOL).
ADA’s Historical Price Movement Points to Potential Surge
Cardano’s recent development activity has been noteworthy, ranking third in work completed on its public GitHub repositories within the last 30 days. This ranking comes only behind Polkadot ($DOT) and its public pre-production environment Kusama ($KSM), both known as the “blockchain of blockchains.”
Besides, famous cryptocurrency analyst Ali Martinez has drawn attention to the potential for ADA’s price to surge significantly. He observed that the cost of Cardano’s native token ADA traded between $0.10 and $0.028 for 665 days between 2018 and 2020 before experiencing a 2,985% price increase after taking off from the long accumulation phase. Drawing parallels from that time, Martinez noted that ADA seems trapped in the $0.46 to $0.24 range for 329 days. Consequently, if history and price action are indicators, ADA might break out around February 2024.
Hence, large holders’ increasing accumulation of ADA suggests a growing confidence in Cardano’s long-term potential, even amid market corrections. Significantly, Cardano’s recent development activity and historical price movement patterns also hint at a potential surge in ADA’s price in the future.
However, investors need to conduct their research and consider the inherent risks of the cryptocurrency market before making investment decisions. Additionally, it is worth noting that the opinions and observations of analysts are speculative and should not be the sole basis for investment decisions.
The cryptocurrency market is characterized by its volatility. While ADA has experienced a dip in price, the continued accumulation by Cardano whales and the historical price patterns may indicate a future surge. Investors should remain vigilant and informed about potential opportunities and risks as the market evolves.
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