Cardano has recently witnessed a significant rise in whale activity, with the average daily volume of large transactions exceeding $13 billion over the past week.
This trend, confirmed by data from blockchain analytics firm IntoTheBlock, positions Cardano among the top performers in daily transaction volume, rivaling even the established cryptocurrency, Bitcoin.
Large Transaction Volume: A Sign of Investor Confidence?
Diving deeper into the data, we observe that the daily average for transactions exceeding $100,000 stands at a remarkable $13.84 billion. This figure represents one-third of Bitcoin’s volume during the same period and a staggering 16 times the volume of Dogecoin.
Additionally, the highest daily volume reached $14.08 billion on April 22nd, coinciding with a price recovery for ADA that saw it break above the $0.51 threshold. While a subsequent four-day bearish trend led to a decline in large transaction volume, it remained consistently above $10 billion, reaching a low of $10.32 billion on April 27th.
This sustained high volume of large transactions could indicate growing institutional investor interest in Cardano or potentially significant internal network movements. However, it is crucial to note that the direction of these transactions remains unclear, as they could represent either inflows or outflows from exchanges.
Whale Accumulation Hints at Potential Price Surge
Further analysis by Santiment reveals a continuous increase in the cumulative balance held by addresses containing between 100,000 and 100 million ADA since the beginning of April. This suggests a potential accumulation trend among large holders, which could fuel a future price recovery for Cardano.
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Technical Analysis Charts a Course for Potential Price Targets
Market analyst Cobra Vanguard has identified an expanding price channel for ADA since the start of 2023. This channel exhibits a pattern of higher highs and lower lows, suggesting a potential continuation of this trend with multiple price targets in sight.
The initial target rests at $0.52, followed by $0.57 and $0.62. According to the analyst, a breach of these levels could pave the way for a further push toward $0.685 and ultimately $0.70, with the ultimate target set at $0.775.
While the exact implications of the recent surge in large transactions remain to be seen, it undoubtedly signifies a renewed level of interest in Cardano (ADA), potentially laying the groundwork for future positive price movements.
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