Cardano (ADA) Poised To Breakout Based On This Bullish Sign Spotted By Santiment

Like the rest of the crypto market, Cardano (ADA) has been on a roll over the past few weeks, showing a 20.22% increase in the past week and a 28.72% surge from last month.

Although many altcoins in the crypto market have experienced downturns, Cardano has managed to stay afloat. The digital asset is currently trading at $0.4519, with a 1.04% in 24 hours.

With Cardano’s recent surge, the revival of the crypto market, and the fast-approaching Bitcoin halving, many believe Cardano can reclaim its all-time high of $3.10. A closer examination of the driving forces behind this bullish momentum reveals a fascinating shift in ownership dynamics.

Data compiled by crypto analytics firm Santiment suggests a strategic shift, with smaller investors divesting their holdings and larger investors accumulating ADA at an accelerated pace.

This trend is corroborated by the observed spike in funded Cardano wallets, which reached a 4-month peak in mid-November before experiencing a subsequent decline. This decline coincides with the liquidation of a significant portion of ADA wallets, which Santiment showed on its chart in the tweet below.

32,100 wallets were liquidated between November 14 and 22, and an additional 223 in the days leading up to December 7. Interestingly, Santiment noted that some of these liquidations occurred at a loss, ultimately benefiting the larger investors engaged in accumulation.

📈 #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

What the Change in Ownership Structure Means for ADA

This shift in ownership structure is widely interpreted as a positive development for Cardano’s prospects. Santiment wrote on X, “Total $ADA addresses have been shrinking, which is a good sign.”

Prominent market analyst Ali (@ali_charts) has also drawn intriguing parallels between the current price action and the historical trajectory observed during the 2018-2020 period, excluding the downturn caused by COVID-19.

While acknowledging the cryptocurrency market’s volatility, Ali posited that ADA had the potential to breach the $0.45 resistance level if historical patterns hold.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

ADA has crossed this resistance level, and the bullish sentiment extends even further. Ali predicts a possible surge to $0.75 by the end of December, which will be ADA’s highest price since May last year.

Cardano’s recent price action and ownership trends reveal a compelling narrative of bullish momentum and a promising future. The recent surge and strategic shift in ownership towards larger investors shows Cardano’s potential for sustained growth in the coming weeks.

Meanwhile, ChatGPT has predicted Cardano’s trajectory for 2024, projecting good things for the ADA community.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.