Cardano (ADA) Sees 1,218% Spike In Major Metric As Whales Accumulate

The Cardano blockchain has been relatively quiet since the beginning of July, alongside an ADA price consolidation. As per on-chain transaction data, Cardano whales have also been relatively quiet

Cardano blockchain activity has been relatively dull since early July, mirroring the ADA price consolidation. However, on-chain transaction data reveals a recent surge in Cardano whale activity.

As per on-chain metrics from IntoTheBlock, a recent 1,218% spike in daily whale inflows might signal the start of an ADA price uptick. Notably, daily whale inflows have steadied below 5 million ADA throughout the month, except for a recent spike.

According to the Large Holders Inflow metric from IntoTheBlock, the Cardano blockchain experienced a 1,220% surge in whale inflows. As mentioned earlier, daily inflows into whale wallets, or wallets holding at least 0.1% of the circulating ADA supply, have been declining since July 5.

However, a surge in activity at the beginning of the week saw the number of inflows into whale addresses spike from 14.51 million ADA on July 8 to 110.82 million ADA on July 9. This surge is more evident when compared to the 2.83 million ADA recorded on July 7, indicating a 3,815.9% increase in daily inflows over two days.

The Large Holders Inflow metric tracks the amount of tokens entering wallets that hold at least 0.1% of the circulating supply of ADA. According to data from Coinmarketcap, there are currently 35.87 billion ADA tokens in circulation. This means that each wallet being tracked by the metric has to possess at least 35.87 million ADA tokens before they can be classified as large holders or whales.

According to the ADA holdings distribution, only 0.01% of the total Cardano addresses are within the range of those possessing 10 million to 100 million ADA tokens. However, they control a majority (36.26%) of the coins in circulation, which gives them a say in the overall price movement.

Whale activity doesn't just affect prices directly; it can also sway overall market sentiment. When some of these big players make moves, it can either boost confidence or spread fear among other whales and retail investors.

Recent bearish sentiment saw ADA hit a nine-month low of $0.3211, but it has since rebounded and is now on the verge of turning positive in seven days. At press time, ADA trades at $0.3936, up 2.25% in 24 hours.

This short-term price appreciation has seen ADA break out of a falling wedge formation on the four-hour price chart, which could ultimately lead to a 70% surge above the $1 level.

On the development front, the Cardano blockchain, which was recently slammed for being a dead coin, is set to launch an upgrade to its network.

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