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- Cardano whales bought ADA in bulk in a show of sustained bullish sentiment.
- ADA price has showcased consolidation in recent times but with positive projections for growth.
Cardano (ADA) has entered a consolidation phase following a week of double-digit price gains. Large investors, often referred to as whales, have taken the opportunity to increase their ADA holdings. The market is now watching whether this push is enough to ignite a bullish rally.
Are ADA Whales Stockpiling?
Onchain market analyst Ali Martinez revealed that Cardano whales purchased 100 million ADA tokens in 24 hours. This huge whale accumulation comes amid a short-term volatility in ADA’s price, suggesting a consolidation phase.
#Cardano whales bought over 100 million $ADA in the last 24 hours! pic.twitter.com/IrZjA54tGy
— Ali (@ali_charts) December 5, 2024
ADA registered price gains of over 223% within the last 30 days. As a result, around 3 million ADA addresses traded “in money,” accounting for over 72% of the total number of ADA addresses. As of this writing, ADA’s price has been down 4.2% in the last 24 hours, setting the price at $1.17. The market capitalization decreased by 3.7% to $40.9 billion in the last 24 hours.
Amid ADA’s price volatility decrease, whales decided to take the opportunity to accumulate more tokens. Besides whales, investors at large also considered buying Cardano, as indicated by the increase in volume. Notably, the buy volume metric reached 100 and 73 on December 3, showcasing high buying activity.
Usually, a figure near 100 implies a lot of buying pressure. Nonetheless, the buying sentiment deteriorated in the following days, with the metric falling to 6.6 on December 5. Aside from intense whale activity, the blockchain has achieved a key milestone.
Hydra, Cardano’s scalability solution, handled over 2 billion transactions in under 4 hours, enabling Cardano to outperform Visa’s daily volume. According to a CNF report, the scaling protocol also surpassed 1 million Transactions per Second (TPS) this week.
ADA’s Next Move
Analysts have analyzed ADA’s on-chain metrics to determine whether these achievements and milestones will uplift the price. The analysis showed that trading volume declined while ADA’s price went sideways, suggesting reduced investor participation.
ADA’s Market Value to Realized Value (MVRV) ratio fell sharply, dropping to 37%. The token’s velocity also decreased, indicating that investors used ADA in fewer transactions within a given timeframe. These data indicated a potential trend reversal in the next few days.
However, the technical indicator MACD showed a bearish crossover. This suggested a price drop, which could push ADA toward its $1 support before it begins a new bull rally. Some market analysts have set a near-term target of $2.453 for ADA.
Others believe ADA might reach $10 depending on market conditions and how effectively the Cardano team executes its mission.
Intriguingly, Charles Hoskison, the founder of Cardano, has shared his ambitious vision for the blockchain ecosystem. In a CNF article, he asserts that the Cardano blockchain could serve as the foundational infrastructure for global systems.
