Cardano (ADA) is seeing impressive on-chain activity that has pushed its price by 7% to almost its 2023 high.
With the rally, ADA is now worth $0.4545 with a market capitalization of $15,524,358,829. The coin’s trading volume complements this growth, soaring by 26.23% to $15,524,358,829.
The bullish growth of Cardano comes despite the protracted losses some altcoins are recording today. According to crypto analytics provider Santiment, the current resurgence in Cardano might be fueled by a hoard of small traders selling off their bags to the whale holders.
📈 #Cardano's market value is +7% today, despite the majority of #crypto dropping Wednesday. Total $ADA addresses have been shrinking, which is a good sign. Typically, declining wallets is a sign of small holders capitulating & selling to whales at a loss. https://t.co/7NeeZ6pRph pic.twitter.com/FAsL2AEj9N
— Santiment (@santimentfeed) December 6, 2023
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Cardano Shift in Ownership Trends
Per the Santiment data, the shift in ownership of ADA is a positive development for Cardano.
The price of ADA has grown concerning the transfer of ADA from smallholders to whales. Per the chart shared, funded Cardano wallets with at least 0 balance hit an almost 4-month peak around November 18 before tanking significantly in the period between November 14 and November 22.
In this period, a total of 32.1K ADA wallets were liquidated. This liquidation was also recorded in the three days leading to December 7, where a total of 223 ADA wallets were liquidated. A common trend observed by Santiment was that some of the wallets selling did so at a loss, a move that is ultimately beneficial to the whales.
What Comes Next for ADA?
Intrigued by the bullish move in ADA, top market analyst, Ali Martinez highlighted how the coin reflects a similar growth pattern recorded in the 2018 – 2020 trajectory, discounting the COVID-19 era.
— Ali (@ali_charts) December 7, 2023
While volatility is still a major consideration, Martinez confirmed that if the historical patterns hold, it may breach the $0.45 resistance level. However, this is not the ultimate target for ADA, as Martinez, alongside other analysts, believes a push toward the $0.75 by late December cannot be ruled out.
If achieved, the $0.75 price will be the biggest ADA valuation since May 2022.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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