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Despite the prevailing bearish sentiment in the crypto market, new data reveals that Cardano whales have been rapidly accumulating ADA tokens over the past year. This accumulation trend signals growing confidence in Cardano's future potential and has historically preceded major price increases for the asset.
According to analytics platform Santiment, the number of wallets holding between 100,000 and 10 million ADA tokens has reached its highest level in 16 months. There are currently 25,294 of these "whale" wallets, up from a low of 23,190 in July 2022 [1]. This uptick bucks the overall negative market sentiment and suggests whales anticipate growth ahead.
A similar pattern was seen among slightly smaller ADA holders dubbed "sharks". Wallets with 100,000 to 10 million ADA have added $116.1 million worth of the asset since May 21. Their trading volume also recently hit a 10-month high of 67 billion ADA.
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This return of ADA whales has put their holdings at 34.4% of the total circulating supply, close to an all-time high. The last time whales controlled this much ADA was in September 2021 right before Cardano hit its $3.10 peak price. Their accumulation has persisted despite ADA declining 35% over the past four months.
Past whale build-ups often foreshadowed rallies. For example, the number of large wallets dropped continuously from February 2021 to June 2022 before rebounding last July, marking the bottom. ADA then surged in value for the rest of 2022.
With whales once again rapidly accumulating, many analysts think a pump could be imminent. Some have set price targets as high as $1 in the short-term if overall market conditions improve. However, ADA has struggled lately, shedding 3.7% over August 10-13. It currently trades around $0.29, failing to break above resistance at $0.35.
Yet the return of whales suggests ADA is undervalued at its current price. Their renewed interest may soon overcome selling pressure and allow bulls to regain control. If so, Cardano's native asset could be on the cusp of a major breakout!
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