Cardano’s [ADA] current trajectory suggests a potential recovery from recent downturns, with weekly and monthly declines of 3.87% and 4.87% respectively.
Notably, as large holders refrain from selling and instead opt to retain their holdings, ADA has witnessed a 0.50% increase in value within the past 24 hours.
This behavior has reinforced the cryptocurrency’s gradual upward trend.
Strong Commitment of Whales Towards ADA
Data from IntoTheBlock indicates a significant decrease in the number of major ADA holders who possess at least one percent of the total supply, as seen in the Large Holder Netflow metric.
The Large Holder Netflow tracks the net movement of assets in and out, and currently, it has dropped by 1181.52% over the past week.
This notable decline suggests that major holders are transferring their ADA from exchanges to private wallets, hinting at a shift towards long-term investment strategies.
Such accumulation tendencies could potentially lead to a shortage in supply, consequently driving up ADA’s price as it sustains its recent positive momentum.
Positive Activity Indicating a Possible Rally
Further assessments by CryptoCrypto reveal indications that ADA is gearing up for a potential price surge.
An important metric to observe is the high transaction volume, reflecting the amount of ADA being traded among major holders with substantial stakes.
In the last 24 hours alone, ADA transactions have totaled 18.39 billion, a significant figure with implications for market sentiment.
In addition, CryptoCrypto highlighted a slight decrease in Daily Active Addresses (DAA) alongside a minor uptick in ADA’s price.
When combined with the decrease in Large Holder Netflow, it indicates a shift in participant behavior towards holding rather than selling.
This trend of accumulation might act as a catalyst for ADA’s price increase, potentially leading to higher trading volumes in the near future.
Gradual Rise in Buying Interest
The Open Interest (OI) for ADA has shown a modest increase of 0.28% over the last 24 hours, suggesting a rise in long positions being opened and actively supported.
However, despite these positive signals, the Total Value Locked (TVL) in ADA’s ecosystem has remained stable, indicating a neutral market sentiment according to Defillama.
TVL represents the total value secured within a DeFi platform, reflecting user stakes, deposits, and investments.
An increase in TVL would likely corroborate the bullish trend and bolster ADA’s upward trajectory.