Cardano (ADA) is witnessing a resurgence of activity from large investors, with daily transaction volumes exceeding $10 billion for the past week. This surge in whale interest, as evidenced by on-chain data, suggests a potential turning point for the cryptocurrency.
Cardano Nears Bitcoin’s Territory in Daily Volume
According to IntoTheBlock, a blockchain analytics platform, Cardano has processed an average of $13.84 billion in daily transactions exceeding $100,000 over the past seven days. This impressive volume positions Cardano as a major player in the cryptocurrency landscape, rivaling even Bitcoin (BTC) which sits at roughly three times the volume. Interestingly, this surge represents over 16 times the daily transaction volume of Dogecoin (DOGE).
While a high volume of large transactions can indicate growing institutional interest or significant internal network activity, it doesn’t necessarily predict price movements. These large transactions could represent either inflows or outflows from exchanges, making it difficult to discern a clear buying or selling trend.
Accumulation Signals and Analyst Predictions
However, there are additional signs that paint a potentially bullish picture for Cardano. Data from Santiment reveals a steady increase in the cumulative balance held by large addresses (100,000 to 100 million ADA) since the beginning of April. This suggests a potential accumulation trend amongst major holders, which could fuel a future price rise for ADA.
Market analyst Cobra Vanguard has also chimed in, identifying an expanding price channel for ADA since the start of 2024. This pattern indicates a series of higher highs and lower lows, potentially leading to continued price appreciation. Vanguard has even outlined several potential price targets, ranging from $0.52 to $0.775, depending on Cardano’s ability to breach key resistance levels.
Cardano’s Future: A Balancing Act
While the recent surge in whale activity and analyst predictions offer a glimmer of hope for Cardano investors, the cryptocurrency market remains volatile. Closely monitoring both on-chain data and technical analysis will be crucial in understanding the true direction of Cardano’s price journey
About The Author
