• Whale accumulation alongside a spike in on-chain volume tends to suggest that an asset will recover.
• Cardano [ADA] Sharks and whales have been accumulating, reaching the peak registered in September 2022.
• On-chain sentiment has improved in the last 30 days, suggesting a possible ADA rally.
Cardano (ADA) Accumulation Suggests Rally Ahead
Whales & Sharks Begin Accumulating ADA
According to on-chain analytics platform Santiment, whales and sharks who hold between 100,000 – 10 million tokens of Cardano (ADA) have been accumulating. This cohort represents 34.02% of the total ADA supply and has resulted in total accumulation reaching the peak registered in September 2022.
On-Chain Volume Increases
The increased whale and shark accumulation has caused on-chain transaction volume to rise since February. On-chain volume refers to the total amount of assets via a blockchain network and is not necessarily traded. At press time, ADA’s on-chain transaction volume was 49.69 billion— an incredible rise from 16.18 billion on 3 February.
Price Movement & Market Sentiment
Traders were bullish on price action for Cardano (ADA). Despite this positive sentiment being present, the impact of whale & shark actions may not be immediate at first glance as it currently sits just above $0.29 per token at press time – lower than when accumulation began at $0.39 per token due to massive profit taking from traders during its extended uptick period from March to April and June to July .
On Chain Sentiment Improves
While ADA’s weighted sentiment was not as high as it was when the price was $0.39, on-chain data showed that it had improved in the last 30 days which suggests that there is still room for growth with potential for a rally ahead for Cardano (ADA).