- Cardano (ADA) whales have been accumulating big sums with a recent $30 million inflow to the digital asset.
- For the 5th straight day, ADA has rallied, gaining nearly 6 percent in the last 24 hours.
As Cardano (ADA) begins to make headways, whales are playing a key role. Recent data shows that in the last two weeks, Cardano whales have invested $30 million in capital inflows. This is a major development given that the price stagnation from the last couple of months was in part due to little activity from whales. Data shows that between July 14 and October, whale balances were flat, this directly impacted ADA which was stuck between between $0.24 and $0.28.
Since the start of October, whales (holders of between 1 million to 1 billion ADA) have acquired 110 million ADA coins, bringing their balances above 20.35 billion, a level not seen since July 2023. This suggests that whales are ready for some bullish action over the coming weeks and months.
The involvement of whales has put ADA on the verge of a breakout that could see it trade above $0.30. The now 9th-ranked coin by market cap began its ascent on October 19 at a low of $0.247. At the time of press, ADA is trading at $0.27 after a nearly 6 percent surge in the last 24 hours. This pushes its weekly gains to a little over 11 percent. These developments suggest that ADA is ready to challenge the daily MA 200 barrier at $0.31. However, around 508,900 addresses had bought 5.9 billion ADA at the average price of $0.31. This could pose a challenge in that some will look to cash out above this level.
Although the latest data suggests that the recent price action is primarily driven by whales, retail investors are poised to join the movement. The Aggregregate Order Books from 10 of the leading crypto exchanges show that bullish retail traders have placed orders to purchase 311 million ADA coins. Interestingly, this is more than the available supply of 300 million coins. This means there is greater demand than supply which is a hugely bullish sign in any market. If the demand continues to increase, sellers will look to increase their prices, triggering a mid-term to long-term bullish wave.
In addition to whale and retail involvement, Cardano has continued to enjoy institutional interest. This week’s CoinShares report shows that digital asset investment products received inflows of around $66 million. Unlike Ethereum which recorded outflows, Cardano and Solana brought record inflows.
🟢 Week 43 inflows: US$66m
— CoinShares (@CoinSharesCo) October 23, 2023
The report reasons that much of the interest is driven by the likelihood of a spot Bitcoin ETF being approved. This now looks imminent. Several experts have noted that Bitcoin will be the first crypto but not the last. Already Cathie Wood’s ARK Invest has filed for an Ethereum spot ETF. There have also been speculations of an XRP spot ETF. As more of these products are launched, Cardano will be a leading candidate. This will help drive institutional investment in the digital asset, driving its prices to a possible all time high.
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