Why Cardano whales are accumulating ADA tokens, what to expect
- Cardano is showing decoupling signs and after yielding nearly 8.5% gains since Tuesday.
- Addresses holding 10,000 or more ADA tokens have scooped up nearly 1.03 billion Cardano in the past five months.
- ADA holders have accumulated the altcoin consistently over the past five months, fueling a bullish narrative in the asset.
Cardano whales have been consistently accumulating the Ethereum-killer altcoin since November 2022. There has been a spike in holdings of addresses that own 10,000 or more ADA, based on data from crypto intelligence tracker Santiment.
Whale accumulation and the recent decoupling of ADA are bullish signs for the altcoin.
Also read: Ethereum gears up for rally to $2,000 with recovery in liquid staking tokens
Cardano whales continue mass accumulation of ADA
Cardano network’s large wallet investors holding 10,000 or more ADA tokens have consistent added to their ADA holdings over the past five months. There has been a spike in ADA holdings of addresses with 10,000 or more Cardano tokens.
As seen in the chart below, Cardano addresses with 1,000 to 10,000 ADA or more have scooped up the Ethereum-killer consistently.
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Cardano wallets scoop up ADA
As seen in the chart above, there is a spike in ADA accumulation despite the recent dip in the altcoin’s price. This is typically considered a bullish sign for the Ethereum-alternative token.
Cardano shows signs of decoupling
Analysts at crypto intelligence tracker Santiment noted signs of decoupling in Cardano. Alongside mild decoupling signs, experts have noted nearly 9% gains in ADA price since Tuesday.
#Cardano has been showing some mild decoupling signs this week, and the #7 market cap asset is +8.2% in the past 24 hours. Addresses holding 10,000 or more $ADA have collectively accumulated 1.03B (3.3% more coins) in the past 5 months. https://t.co/7p6fOuzvG5 pic.twitter.com/TJGVwYujJn
— Santiment (@santimentfeed) March 29, 2023
Whale accumulation supports the bullish thesis for Cardano. The smart contract network’s development activity continues to remain higher relative to its competitors. This is another factor fueling a bullish sentiment among holders.
Development activity of blockchain protocols
Cardano ranks higher than ChainLink, Cosmos and Ethereum, the smart contract network’s leading competitors.
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.
