Cardano Whales Acquire 120M ADA in October, But There’s a 520M Deficit
The price of Cardano (ADA) has been stagnant while other cryptocurrencies like Bitcoin (BTC) and Solana (SOL) have experienced significant gains. One factor that could potentially trigger a breakout for ADA is the activity of Cardano whales, who hold large amounts of ADA. In April and May, these whales sold off a significant amount of ADA, causing the price to decline by 24%. However, in October, they acquired 120 million ADA, bringing their total holdings to 21.36 billion ADA. Despite this buying wave, the whales still have a deficit of 520 million ADA to cover in order for the price of Cardano to double.
A Significant Increase in Network Participation Rate Could Also Propel Price
Another important on-chain metric that could impact the price of Cardano is the network participation rate. In previous instances where ADA experienced price rallies, there was a corresponding increase in network participation. However, in recent weeks, the network participation rate has been declining, with fewer users interacting with products built on the Cardano network. This decline in activity could explain why the recent price performance of ADA has been below industry trends. To see a significant increase in price, Cardano would need to consistently surpass 70,000 daily active addresses and see a resurgence in network participation.
ADA Price Prediction: Road to $0.50
From an on-chain perspective, two key factors that could lead to a doubling of Cardano’s price are an increase in whale holdings and an uptick in network participation. Currently, there is resistance at the $0.27 level, where many wallets bought ADA at an average price of $0.27. If these holders decide to sell and take profits, it could trigger a pullback in the price. However, if the whales continue their buying trend and the price breaks above $0.27, Cardano could see a significant increase and potentially reach $0.50. On the other hand, if the price reverses below $0.20, it could lead to a prolonged reversal in price.
Hot Take: Cardano Needs Whales and Network Participation to Double Its Price
Cardano’s price has been stagnant compared to other cryptocurrencies, but there are two factors that could potentially lead to a breakout. The first is the activity of Cardano whales, who have recently acquired 120 million ADA. However, they still need to cover a deficit of 520 million ADA in order for the price to double. The second factor is network participation, which has been declining in recent weeks. To see a significant increase in price, Cardano needs to surpass 70,000 daily active addresses and see a resurgence in network participation. These factors will play a crucial role in determining whether Cardano can reach its potential.
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