Cardano (ADA) whale transactions have recently surged to a 4-month high after the major sell-off that negatively impacted the prices of virtually all cryptocurrencies in the market, including Bitcoin (BTC), the largest crypto by market capitalization.
The market capitulation also sent the price of ADA, Cardano’s native token, to a bottom at $0.4 on the 12th of May 2022. Despite the market situation, data provided by Santiment shows that whales have been busy taking advantage of the price dips to buy more ADA, in preparation for the upcoming Vasil hard fork designed to boost Cardano network performance.
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Cardano (ADA) Whale Transactions Hit 4-Month High
According to on-chain analytics firm Santiment, ADA whale (wallets with over $100,000 worth of ADA) transactions surged to 1,085 earlier this month, the largest increase seen since January 2022.
As related by Santiment, there were tons of transactions initiated by Cardano whales during the major market downturn, which indicated that whales were trying to leverage the dip, believing that the market will recover in the long run.
Santiment tweeted, “Cardano’s whales showed a flurry of transactions yesterday as prices were bottoming out to $0.40, between 8am and 12pm UTC. These spikes have very commonly indicated price direction changes for ADA, and we’re monitoring further whale activity closely.”
🐳 #Cardano's whales showed a flurry of transactions yesterday as prices were bottoming out to $0.40, between 8am and 12pm UTC. These spikes have very commonly indicated price direction changes for $ADA, and we're monitoring further whale activity closely. https://t.co/KKnjXVH8no pic.twitter.com/aRTfClg8qQ
— Santiment (@santimentfeed) May 13, 2022
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It’s worth noting that Cardano (ADA) investors have somewhat been holding their assets throughout the bear market, unlike when they were busy selling ADA. The spike in whale transactions came after ADA bag holders started accumulating once again about five weeks ago.
Also, data from Coinbase’s price pages shows that ADA has a typical hold time of 121 days. This implies that Cardano users on the platform hold onto their assets for over four months before selling them or sending them to another account or address.
According to the crypto exchange, a long hold time signals an accumulation trend, while a short hold time indicates an increase in the movement of tokens.
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