The Cardano blockchain has been experiencing a period of relative quietness since the beginning of July, accompanied by a consolidation in ADA prices. This quiet phase also seems to extend to Cardano whales, as on-chain transaction data indicates that daily whale inflows have been relatively stable, with numbers consistently staying below 5 million ADA since the start of the month. However, there was a recent significant spike in whale inflows earlier this week, with IntoTheBlock reporting a 1,218% increase in daily whale inflows. This sudden surge in activity could potentially signal the beginning of an uptick in ADA prices.
The Large Holders Inflow metric from IntoTheBlock reveals that there was a massive 1,220% surge in whale inflows into the Cardano blockchain. Despite a decline in daily inflows into whale wallets since July 5, a surge in activity at the start of this week led to a spike in the number of inflows into whale addresses. The amount of ADA tokens entering these wallets jumped from 14.51 million on July 8 to 110.82 million on July 9. This increase is particularly noteworthy when compared to the mere 2.83 million ADA recorded on July 7, representing a staggering 3815.9% increase in daily inflows over two days.
Whale activity plays a crucial role not only in influencing prices directly but also in shaping overall market sentiment. These large holders have the power to sway the movement of prices by making significant moves that can either instill confidence or spread fear among other whales and retail investors. Recent bearish sentiment in the market caused ADA to plummet to a nine-month low of $0.3211. However, the cryptocurrency has rebounded and is now on the brink of turning positive in a seven-day timeframe, currently trading at $0.3936 with a 2.25% increase in the past 24 hours.
As a result of this short-term price surge, ADA has broken out of a falling wedge formation on the price chart, indicating a potential 70% surge above the $1 threshold. Meanwhile, on the development front, the Cardano blockchain, which was previously criticized as a “dead coin,” is gearing up to launch an upgrade to its network. This development, coupled with the recent whale activity and price movements, could potentially lead to significant changes in the Cardano ecosystem.
While the Cardano blockchain has been relatively quiet in recent weeks, the sudden spike in whale activity and potential price movements signal a period of change and excitement for ADA holders and investors. As whales continue to wield significant influence over the market, their actions and behaviors will undoubtedly play a crucial role in shaping the future of the Cardano ecosystem.