The Cardano blockchain has experienced a period of relative quietness since the beginning of July, with ADA price consolidation being a common theme. However, recent on-chain transaction data has revealed an interesting trend regarding Cardano whales. These large holders of ADA have been relatively inactive since the last week of June, with daily whale inflows remaining under 5 million ADA for the most part.
Despite the overall calmness, there was a recent notable spike in daily whale inflows, indicating a potential uptick in ADA price. Data from IntoTheBlock showed a significant 1,218% increase in whale inflows within a short period. This surge in activity resulted in the number of inflows into whale addresses spiking from 14.51 million ADA on July 8 to 110.82 million ADA on July 9, representing a 3815.9% increase over two days.
Impact on Market Sentiment
Whale activity is not limited to its direct effect on prices but can also influence overall market sentiment. These large holders have the power to boost confidence or spread fear among other whales and retail investors. The recent bearish sentiment that pushed ADA to a nine-month low of $0.3211 was quickly reversed, with the cryptocurrency now trading at $0.3936 at the time of writing, marking a 2.25% increase in the past 24 hours.
The surge in whale activity and the subsequent price increase have led to ADA breaking out of a falling wedge formation on the price chart. This breakout could potentially lead to a 70% surge above the $1 threshold in the near future. This development is significant as it indicates a shift in market dynamics and signals a possible bullish trend for ADA.
Development Updates
Apart from the price action, the Cardano blockchain itself is undergoing changes. Despite being criticized as a “dead coin” in the past, Cardano is now gearing up for a network upgrade. This upgrade could potentially bring new features and functionalities to the blockchain, further bolstering its position in the cryptocurrency space.
The recent resurgence in whale activity on the Cardano blockchain has captured the attention of market participants. The increased inflows into large holder wallets, coupled with the positive price movement, suggest a potential shift in market dynamics. As the ADA price continues to evolve, all eyes will be on the whales and their impact on the overall sentiment and price trajectory of Cardano.
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