Cardano whales bought 10 million ADA tokens in 24 hours, what does this mean?
- Cardano accumulation by large wallet investors signals the likelihood of further gains in ADA as of Tuesday.
- Whales holding between 1 million and 10 million Cardano tokens added 10 million ADA to their wallets in the last 24 hours.
- ADA is down nearly 2% on Tuesday but has rallied over 24% in the last seven days.
Cardano (ADA) loses 2% on Tuesday amidst profit-taking by traders. The altcoin’s large wallet investors are accumulating the token at a rapid pace. This is typically considered a bullish indicator for Cardano and could support a recovery.
Experts predict a potential bullish breakout in Cardano if the altcoin’s price sustains its upward trend.
Cardano’s rally likely rides on these catalysts
On-chain data from Santiment shows that whales holding between 1 million and 10 million ADA tokens have accumulated 10 million Cardano in their wallet addresses. Whales scooped up the ADA tokens within the past 24 hours, between Monday and Tuesday.
Typically, accumulation by whales supports a thesis for price gain in the token.
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Cardano whale accumulation | Source: Santiment
Network realized profit/loss (NPL) is a key on-chain metric used to track the net profit/loss of all tokens moved on a given day. NPL shows a large spike on Tuesday, with no corresponding increase in whale transactions valued at $100,000 and higher. It can be concluded that while ADA holders are taking profits, whales are likely accumulating and retail traders are realizing gains.
Whale wallet holdings have climbed even as profit-taking spikes, meaning retail traders or small holders of ADA realized gains on their tokens.
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Cardano NPL, Whale transaction count ($100,000 and higher, $1 million and higher) | Source: Santiment
Cardano gears for a potential bullish breakout
Ryan Lee, Chief Analyst at Bitget Research, told in an exclusive interview with FXStreet:
“Cardano's price rally has stalled around $1.10, likely due to market consolidation following recent gains, broader market sentiment and the measured pace of its ecosystem growth. This pause sets the stage for a potential bullish breakout if the price surpasses $1.40 or a bearish shift if it fails to hold current support levels.”
Lee identified developments in its DeFi ecosystem, network upgrades and notable partnerships as the three key factors influencing the altcoin’s trajectory.
“Movements in Bitcoin and regulatory updates could have a significant impact on ADA's price. The short-term outlook hinges on these dynamics, with a breakout indicating continued upward momentum, while a decline may suggest a period of retracement,” he said.
At the time of writing on Tuesday, ADA trades at $1.0746, down 2%.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
