Following a period of stability, Cardano [ADA] has witnessed a shift in its fortunes, with significant gains observed on the price charts in the last month.
The recent surge in price prompts inquiries into the driving forces behind this rally. According to an analysis by CryptoCrypto, one notable factor is the growing interest exhibited by high-net-worth individuals and entities, commonly known as whales.
Surge in Large Transactions on Cardano
Data from IntoTheBlock reveals a notable increase in whale transactions on the Cardano network in recent days.
Over the past 24 hours, these transactions spiked from 4.78k to 6.31k, indicating a 32.01% rise within that timeframe.
Moreover, there has been a substantial surge of approximately 138.11% in Cardano’s whale transactions over the past week, rising from a low of 2.65k.
Large transactions, typically valued at $100k or more, reflect the long-term confidence of holders in the market’s outlook.
Cardano has a historical appeal to attract whale investors, signaling a positive outlook for the altcoin when they engage. This phenomenon implies that investors have optimistic expectations regarding Cardano’s future.
The increased activity among whales highlights a resurgence of interest in the protocol and a heightened demand, tendencies known to propel prices upwards.
Impact on ADA’s Price Movements
Unsurprisingly, the heightened whale activities have had a sustained impact on ADA’s price performance. At the latest recording, ADA was priced at $0.4265, reflecting a 14.72% increase in value within a day.
Furthermore, Cardano has shown gains of 24.98% on weekly charts and 23.26% on monthly charts, indicating a strong positive sentiment towards the asset among investors.
For instance, Cardano’s transaction volume surged from 16.42 billion to 22.21 billion tokens, suggesting an increased user engagement with the network, pointing to growing interest and adoption.
Additionally, Cardano’s Open Interest per exchange has risen from $53.4 million to $87.65 million in the past week, indicating that these transactions are primarily associated with inflows as investors establish new positions. ADA is presently operating in favorable market conditions, as evidenced by the surge in large transactions.
With the current market environment, ADA is well-poised to continue its upward trajectory on the price charts, potentially testing the $0.5 resistance level in the near future if these conditions persist.