Just like many other crypto assets, ADA, the native token of the popular smart contract platform, Cardano, has greatly underperformed this year despite the execution of the critical Vasil upgrade. Notably, data show that ADA is down 81.99% in the last 12 months and is currently trading for $0.2524 per coin, at the time of writing.
While the crypto market remains flat with no signs of recovery in the short term, insights from a top Santiment community member SanR, indicate that ADA is preparing for a massive rally as Cardano token whales and sharks addresses continue to accumulate hefty volumes of ADA. For context, Cardano sharks and whales are users holding between 100,000 to 1,000,000 units of ADA and between 1 million and 10 million ADA respectively.
📊 Is #Cardano severely undervalued at this point? One of @santimentfeed's key community members certainly sees data making this case, such as sharks & whales (holding 100K to 10M $ADA) accumulating aggressively these past 6 weeks. Read the latest insight! https://t.co/TPskmWBsOH pic.twitter.com/HC0aEWIVns
— Santiment (@santimentfeed) December 27, 2022
According to the crypto analyst, the two on-chain metrics that give the bullish sentiment for ADA include the divergence between price and whale activity and the exhaustion of sellers.
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Additionally, SanR stressed that ADA is highly undervalued but he believes an increase in the price of the 9th-largest crypto asset by the market capitalization is near, given that “on every big price decrease there are fewer and fewer coins moving at a loss.”
In the words of the Santiment analyst, “We are near the area of filling the volume gap. We may expect some serious buying at those levels – bullish. Based on the things mentioned above, I believe ADA’s price will increase in value. However, without any other data, it is difficult to accurately assess the validity of this analysis. It is important to consider multiple factors and carefully evaluate the available data when making investment decisions. This is purely for SanR,” he concluded.
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