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Cardano Whales Strike But Can ADA Stay In Top 10 Cryptos?

Last Updated April 16, 2024 7:08 AM
Teuta Franjkovic
Last Updated April 16, 2024 7:08 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Whale buying surge in Cardano (ADA) suggests accumulation, possibly a bullish sign.
  • Cardano whale buying coincides with price dip, potentially signaling a price bottom.
  • Cardano fights to stay in top 10 cryptocurrencies as whale activity heats up.

Cardano (ADA) has experienced a significant increase in large holder inflows. Data  from IntoTheBlock reveals a 28,372% surge in just one day.

The inflow to whale addresses leapt from 54.93 million ADA on April 13 to an 6.32 billion ADA on April 14.

Unprecedented Surge in Cardano Whales Inflows 

This significant uptick suggests a considerable accumulation of ADA by large holders, typically seen as a bullish signal in the cryptocurrency market. These large holders often purchase ADA on centralized exchanges and transfer it to cold storage. This strategy tends to remove liquidity from the market and potentially drives up prices.

Cardano price
Credit: IntoTheBlock

Indicators of a Potential Price Bottom

The timing of these large inflows is also critical as they may signal a potential price bottom  for ADA. Whale addresses, holding large amounts of a cryptocurrency, tend to buy in bulk following substantial price corrections, anticipating future price increases.

This pattern has been observed with ADA’s price , which dropped to a low of $0.4 on April 13—the lowest since early December 2023—before beginning to rebound. At the time of writing, ADA’s price has risen by 5.61% over 24 hours to $0.48, a sustained recovery over two consecutive days.

Ongoing Battle to Retain Its Top 10 Market Cap Ranking

The surge in whale activity comes at a crucial time for Cardano, which is fiercely competing to maintain its position among the top 10 cryptocurrencies by market capitalization.

Currently, with a market cap of $17.08 billion , Cardano holds the 10th spot. While the increase in large holder inflows generally suggests strong investor confidence and a bullish outlook, it’s also important to consider the possibility of these funds being moved quickly for business purposes, which could affect the market.

The dynamic nature of whale activities makes the ADA market particularly interesting to watch. As the cryptocurrency ecosystem continues to evolve and grow competitively, this remains the case.

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