Cardano Whale Inflow Surges 1,220% – What This Means for ADA Price

Key Takeaways

• ADA rebounded 20% from July’s low of $0.32.
• Whale inflows spiked 1,218%, influencing ADA’s price.
• Cardano must rise past $0.50 for a major recovery.

Cardano kicked off July on a sour note, plummeting nearly 24% and dipping close to $0.3. 

Despite this setback, it wasn’t long until ADA recovered from its fall, snapping back above $0.40 in the subsequent week. On-chain data showed that whales drove this recovery with their shopping spree. 

As ADA shows subtle signs of strength, could this signal a potential for another major price surge? 

Cardano Whales On The Move? 

On-chain data from IntoTheBlock  showed a 1,218% spike in daily whale inflows, jumping from 14.51 million ADA ($5.9 million)  on July 8 to 110.82 million ADA ($45 million) on July 9.

The spike in whale inflow also marks a significant 3,815% leap from July 7, when it only reeled in 2.83 million ADA ($1.1 million). 

At press time, large holders, or whales, controlled a significant portion (36.26%) of the 35.87 billion ADA tokens ($1.4 billion) in circulation, influencing overall price movement despite representing only 0.01% of total addresses. Whale inflows had since simmered down to 7.52 million ADA ($3 million), suggesting that the shopping spree had stopped.

Looking at the Netflow,  we can see that it is hovering around 2 million ADA ($1 million) after it spiked to 110 million ADA ( ($45 million))  on July 9. Considering this data, potential selling pressure is either behind us or the assets are sitting in exchange wallets, ready to be sold.

ADA Price Analysis 

Cardano’s price has been in a downtrend since reaching $0.80 on March 14. It declined to $0.40 by April 13, then rebounded to $0.44, eventually peaking at $0.53 on April 23. On that day, it resisted a descending trendline from the March peak.

Cardano broke through horizontal support, dropping to a low of $0.32 on July 5. This low interacted with the 0.786 Fibonacci level, followed by a 20% rebound. The daily RSI fell to an oversold level of 32%, suggesting ADA might be poised for a significant recovery. Additionally, the daily MACD shows a bullish convergence with green oscillator bars.

Since the July 5 low, ADA has risen 27%, reaching a point of interaction with the descending resistance level. If the price continues to climb and breaks out, it could signal the beginning of an uptrend.

For a major recovery, Cardano needs to push above the $0.50 mark and establish a higher low during any subsequent downturn. Meeting these conditions could set the stage for a sustained uptrend, potentially leading to $1. If the recent movements indicate the end of its larger Wave 2 correction, the next uptrend could be Wave 3, typically following a 1.168 Fibonacci extension, potentially pushing ADA slightly above $1 by the end of this advance.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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