Cardano Sharks Accumulated $83M Worth Of ADA In 6 Weeks – Santiment
This week, Santiment, an on-chain data aggregator, revealed an accumulation spread of ADA by Cardano sharks. Cardano whales have been on an accumulation spree in the past two months.
Cardano Whales Bought 330M ADA Tokens In Less Than Two Months
Santiment’s chart revealed that wallets that have 10,000 to 100,000 ADA began buying more ADA on November 7th. They have increased their holdings by over 10% in the past six weeks.
At the beginning of November, these whales’ ADA holdings accounted for 10.5% of ADA in supply circulation. Surprisingly, their buying spree has pushed that figure to 11.60%.
During this time, they bought over 330 million ADA, worth over $83 million. It is worth noting that the buying spree comes when the market is bearish.
Before now, sharks have been responsible for significant sell-offs in the crypto space as the level of FUD (Fear, uncertainty, and doubt) has increased in the crypto industry.
Hence, several crypto investors sold their crypto holdings for fear that prices might continue to decrease. Usually, an accumulation of this kind would positively affect a token’s price.
Unfortunately, this was not the case with ADA. The ongoing crypto market crisis and the downward trend of ADA neutralized the effect of the accumulation.
ADA Community Remain Bullish
Despite the ongoing crisis, the Cardano community remains optimistic about the market. The token continues to trade around the $0.25 level after hitting an all-time high of $3.10 last year.
The token is about 90% away from this peak price. On the other hand, the Cardano blockchain has been sluggish in terms of updates this year.
Charles Hoskinson, the founder of Cardano, even postponed the Vasil hard fork update several times before it finally happened. Although accumulation trends like this can push the price of a digital asset up, there is a significant disadvantage.
The whales might also be getting set for a significant sell-off which could impact the market negatively. The larger the volume of tokens held by whales, the more their impact on ADA’s price if they choose to sell.
The ADA community is confident that ADA’s price will jump by about 80% in the coming months. If this occurs, ADA could trade at $0.4 in Q1 2023.
According to CoinGecko, ADA trades around the $0.25 region at press time. So, it’s likely that the token would not end 2022 above $1, contrary to popular belief.
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