Cardano (ADA) Whale Activity Surges to Highest Point in 6 Months

Cardano (ADA), one of the largest cryptocurrencies by market cap, has experienced a surge in its whale activity, reaching the highest point in almost 6 months. This comes amid a broader crypto market recovery this week. The new development has raised speculations and excitement about the possibility of a higher price trend for ADA.

The global crypto market is currently experiencing an uptrend with the majority of the tokens trading in the green zone. With Bitcoin (BTC) leading the charge, the total crypto market cap has grown by 1.49% to $2.34 trillion over the last 24 hours. While everything looks good right now, investors are worried about the sustainability of the movement.

Cardano Whale Transactions Surge Significantly

Meanwhile, new data show the 10th-largest cryptocurrency by market cap, Cardano (ADA), has recorded significant growth in whale transactions. According to recent statistics published by Santiment, a cryptocurrency intelligence tool, activities involving huge sums of ADA, over $100k have reached their highest point since November 8, 2023. Per the data, there have been about 1,776 different Cardano transactions carrying over $100,000 within this time.

#Cardano's whale transactions exceeding $100K in value has exploded to the highest amount since November 8th. These spikes in whale activity historically correlate with potential price reversals. $ADA's market cap has shrunk -43% since March 13th. https://t.co/alFMlZ9Kns pic.twitter.com/pN21IzS0ST

— Santiment (@santimentfeed) April 29, 2024

Additionally, Santiment noted that there have previously been instances of potential price reversals in the market trajectory of ADA that have corresponded with this noteworthy upsurge in Cardano whale activity. Significantly, since March 13th, the market capitalization of ADA has dropped by 43%, signifying a period of high volatility and market changes for the cryptocurrency.

“These spikes in whale activity historically correlate with potential price reversals. ADA‘s market cap has shrunk -43% since March 13th,” Santiment said.

However, separate data from the aforementioned tracker pointed out that the number of Cardano “non-empty” wallets has dropped by 0.13% in the last 3 months, while tokens like Bitcoin and Dogecoin have experienced a spike of 2.6% and 13.8% respectively in their active wallets over the same period. This pattern sets ADA apart as one of the few networks experiencing a decline in wallet activity over this period even with the growth in whale activities.

Cardano (ADA) Price Action

According to data from CoinMarketCap, the price of Cardano is currently 0.4525, signifying a 0.41% increase in the last 24 hours. What is more, ADA trading volume over the last 24 hours has jumped by 1.31% to $277.4 million. At the time of writing, Cardano has a live market cap of $16.1 billion.

The price of Cardano (ADA) fell below $0.45 last week, the crucial support zone for the altcoin, after losing its main support at $0.50 levels. In the event that the price of ADA decisively drops below its present level, this might generate more bearish momentum, with $0.4280 looking to be the next major support level.

On the other hand, the Cardano price immediate resistance is $0.4920, and its psychological threshold is $0.500. If the price of the token crosses this level in the North direction, then we might experience a price rally to $0.5250 and even further to $0.5650 if the bulls hold the initiative.

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