The number of whales on the Cardano ($ADA) network has recently begun to grow, at a time when the cryptocurrency’s trading volume and price have been rising as part of a broader cryptocurrency market recovery.
According to on-chain analytics firm Santiment, 20 new addresses holding over 1 million $ADA tokens have recently appeared, after the cryptocurrency’s price has risen more than 30% since the end of December, and its trading volume has reached a 2-month high.
The cryptocurrency’s recovery came after whale addresses recently resumed accumulating $ADA, which could be a key validator to keep an eye on for the cryptocurrency’s breakout. As previously reported, after dumping over 560 million $ADA in the final two months of 2022, $ADA whales have resumed accumulation this year, adding 217 million tokens to their stash.
Notably, the cryptocurrency community has set a bullish price target for $ADA this month, presumably in response to the network’s growing popularity. The smart contract platform’s price was trading at $0.495 by the end of January, according to nearly 3,400 cryptocurrency community members, representing an 83% increase from $ADA’s initial $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.
Earlier this week, popular Cardano influencer “ADA whale” predicted that ADA would rank third in terms of market capitalization. The forecast was based on ADA’s strong rally so far this year.
Dan Gambardello, Founder of Crypto Capital Venture and host of the popular YouTube channel “Crypto Capital Venture,” previously stated that ADA is “undervalued and oversold” and will be one of the best coins to own this year. According to him, ADA is “just doing its thing,” and it will make sense in the long run.
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