Over the past 96 hours, more than 70 million Cardano [ADA] tokens have changed hands among large holders, sparking speculation. This surge in activity among major investors comes following the submission of Grayscale’s application for the inaugural Cardano Spot ETF.
Now, with institutional interest in play, the crucial question arises: Could these significant transfers by large holders be linked to the potential launch of the ETF? And how might this impact the price of ADA?
Movement of Cardano Large Holders
In just 96 hours, technical analyst Ali Martinez has noted the transfer of over 70 million ADA tokens by significant holders.
Analysis of on-chain data indicates substantial changes in holdings among addresses with 1 million to 10 million ADA, coinciding with a broader decrease in price.
Although such activities often signify institutional positioning, the main question lingers: Are large holders accumulating in anticipation of a potential price upsurge, or does this redistribution hint at selling pressure?
Considering Grayscale’s filing for a Cardano Spot ETF, these considerable transfers may signify strategic maneuvering by key players. If accumulation drives these actions, ADA’s price might find stability or an upward trend.
On the contrary, ongoing selling pressure could result in further downward movement.
Setting the Stage for a Cardano Spot ETF
Grayscale Investments is making headway in the altcoin ETF domain, pursuing regulatory consent via NYSE Arca for a Cardano spot ETF.
If approved by the SEC, this would mark Grayscale’s initial standalone ADA investment vehicle, offering exposure to Cardano for both institutional and retail investors without the complications of direct ownership.
The fund’s ADA assets will be under the custody of Coinbase Custody Trust Company, while BNY Mellon Asset Servicing will handle administrative operations.
This submission indicates a rising interest in crypto investment products beyond Bitcoin and Ethereum. Approval could bolster Cardano’s presence in institutional investment portfolios.
Implications for ADA’s Price
Recent actions by large holders have incited speculation regarding Cardano’s price direction in both the short and long term.
In the immediate future, ADA’s price has displayed signs of recovery, rising to $0.8173 as renewed buying pressure from large holders resurfaces. The Relative Strength Index (RSI) at 46.92 indicates ADA is approaching neutral momentum following an oversold phase. Additionally, the Moving Average Convergence Divergence (MACD) hints at a possible bullish crossover.
If buying pressure persists, ADA might challenge crucial resistance around $0.90, with a breakthrough potentially propelling the price towards $1.00. However, rejection at the resistance level could result in short-term consolidation.
Looking ahead, the ETF application for Cardano and overall market sentiment will shape the cryptocurrency’s long-term price movements.
If the ADA spot ETF receives the green light, it could draw institutional funds, propelling ADA past $1.20 and potentially into the $1.50–$2.00 range by 2025.
With large holders accumulating and institutional interest expanding, ADA’s price could experience sustained growth, though macroeconomic variables and market volatility will remain significant risk factors.