Big Cardano holders, known as whales, appear to be taking advantage of the downturn in the cryptocurrency market to buy even more ADA.
According to data from IntoTheBlock, Cardano addresses with over 100,000 ADA skyrocketed by nearly 2,000. Thus, On-Chain activities show that ADA bulls are wide awake and buying.
Also according to the company, more than 31,000 addresses are buying and holding ADA. For analyst Adrian Klent, the ADA whales may be preparing for a wave of more intense accumulation.
“Further solidifying sentiment is recent on-chain data from analytics firm Santiment, which revealed that the balance of addresses with 1 million to 10 million coins hit a new record of 12 billion ADA,” he said.
Furthermore, he noted that a similar bullish move was also seen last week. At the time, data from blockchain services tracker WhaleStats showed that a BNB whale purchased more than 5.3 million ADA tokens.
“The effect of these numerous optimistic events can be seen in the significant increase in ADA addresses. Market observers pointed to a 167% increase in ADA portfolios created in the same period”, he revealed.
He also highlighted that all of the ADA’s high-whaling activities could be positioning Cardano for a new bull rally soon.
“Last week, the value of ADA soared more than 18%. The increased demand for the asset is expected to result in a large increase in price, although bullish momentum could also be lost at the next critical resistance.”
Finally, the analyst pointed out that the bulls can even boost the ADA price. But they will have to be very strong in their movement, as the asset has been recording consecutive drops with more than 5.42% down in less than 2 days.
“The asset may need a significant boost to break $1.5 before thinking about a new bull market,” he said.