Cardano (ADA) surprised whales: Is it a sign of an uptrend?

ADA, which has been rising breathlessly recently, has attracted attention with whale activities.

#Cardano (ADA) reached $1.15 for the first time since April 2022 with its sharp rise in the last week. This rise was realized thanks to the reduction of sales by long-term investors and the appetite of whales to buy. ADA may target even higher levels in the short term with its increasing upward momentum.

The 217% increase seen in the price of $ADA in November caused whales to move. This situation was also observed with the decrease in ADA's 30-day Mean Coin Age data. Average Coin Age measures the "age" of all coins in an asset and how long they have been held. The decrease in this metric indicates that coins that were previously inactive were mostly transferred for sale purposes.

However, this trend reversed last week. According to Santiment data, ADA’s Average Coin Age has started to trend upward, indicating that the network is accumulating more. The decrease in sales by long-term ADA investors contributed to a 10 percent price increase in the last seven days.

In addition, ADA whales have also increased their accumulation during this period. Onchain data shows that addresses holding 100 million to 1 billion #ADA have purchased $276 million worth of tokens in the last seven days. The whales’ increasing accumulation indicates confidence in the asset’s future price movement, which can increase demand in the market and lead to a price increase.

Cardano’s Elder-Ray Index on the daily chart confirms the bullish trend for the popular altcoin. The indicator is currently at 0.31. This indicator measures the strength of a trend by comparing the buying and selling pressure in the market. A positive value indicates that the buying pressure has exceeded the selling pressure and indicates an uptrend.