Cardano Hits 32-Month Peak as Whales Pour in $276 Million.
Cardano has experienced a significant double-digit increase over the past week, reaching $1.15-a price not seen since April 2022. This bullish trend is largely driven by a decrease in selloffs from long-term holders and substantial accumulation by large investors, also known as "whales."
The recent surge in ADA's price by 217% last November spurred activity among previously dormant tokens, evident in a decreased Mean Coin Age over the past 30 days. This metric, which assesses the average "age" of all coins based on their duration of hold, shows a decline when on-chain activity increases. Idle coins are being moved or sold, usually for profit.
However, the last week marks a shift. According to Santiment, ADA's Mean Coin Age is now on an upswing, pointing to network accumulation. With long-term holders refraining from selling, ADA's value rose by 10% in the past week.
Concurrently, ADA whales have augmented their holdings notably. Data reveals that addresses with 100 million to 1 billion ADA coins have collectively purchased $276 million worth of ADA in the last seven days. Such whale activity often predicts positive future price movements, enhancing market demand as it reduces the available supply when these investors hold more.
Cardano's bullish bias is supported by the Elder-Ray Index on the daily chart, which presently is at 0.31. This tool analyzes the market by contrasting buying and selling pressures. A positive value denotes stronger buying pressure, indicating a bullish trend. If maintained, ADA might rise to $1.30, a level last seen in January 2022.
Nonetheless, an increase in coin distribution could propel a dip to $1.09. Failure to uphold this level might see Cardano dropping below $1, possibly reaching $0.92.
The remarkable inflows amounting to $276 million from whales have led Cardano to a 32-month high, reflecting investors' robust confidence. This analysis first appeared on BelnCrypto.
