Cardano (ADA) has gained 10% in the last week, rising to $1.15, a price last seen in April 2022. ADA’s rise is supported by large investors increasing their holdings and long-term holders reducing their selling.
The 217% increase in the price of ADA in November has caused previously dormant tokens to start moving. This is reflected in the decreasing Average Coin Age over a 30-day period. Average Coin Age is a metric that measures the “age” of all coins in an asset based on their holding period, and when it decreases, it means that dormant coins are being moved or transferred for profit. However, in the last week, this trend has reversed and ADA’s Average Coin Age has increased, indicating accumulation in the network.
The sale of long-term ADA holders has led to a 10% price increase in the past seven days. Additionally, ADA whales, or large investors, have increased their holdings by purchasing $276 million worth of ADA in the past seven days. On-chain data shows that addresses holding between 100 million and 1 billion coins of ADA have purchased a large amount of ADA during this period. The purchase by whales could create more market demand, reflecting confidence in the future price movements of ADA. This accumulation could lead to a decrease in the circulating supply, as whales hold a large portion of the supply.
On the daily charts, Cardano’s Elder-Ray Index confirms the bullish trend towards the altcoin. The value of this indicator is recorded at 0.31. A positive value indicates that the buying pressure has surpassed the selling pressure and indicates an uptrend. If this trend continues, the ADA price could rise to $1.30. However, in case of an increase in coin distribution, the price could drop to $1.09, and if the bulls fail to defend this level, ADA could fall below $1 and drop to $0.92.