• Cardano (ADA) was trading at $0.274 with a bearish bias during the Saturday trading session.
• According to data from Santiment, an on-chain data analytics firm, whale addresses holding between one million and 100 million ADA tokens are on the rise.
• Whale activity could significantly influence the price of an asset, but the market participants cannot rely on whale activity alone to definitively determine the direction of the Cardano price in the near term.
Cardano (ADA) experienced a volatile Saturday trading session as the price of the Layer 1 token moved within a bearish bias, trading at $0.274. Investors remain hopeful that the Cardano price will experience positive gains in 2023, but what will it take for the asset to accomplish this feat?
A closer look at the data from Santiment, an on-chain data analytics firm, reveals that large investors or “whales” are increasing their accumulation of Cardano (ADA) tokens. Santiment reported that whales have added 217.2 million $ADA back to their wallets since the beginning of the year, after unloading 568.4 million coins in the final two months of 2022. This could be a factor to watch out for, with the potential to significantly influence the price of an asset.
However, it is important to note that whale activity is not the only factor that will determine the direction of the Cardano price in the near term. The market participants need to take into consideration other factors such as the general sentiment of the crypto market, the token’s fundamentals as well as technicals, and the regulatory landscape.
It is also important to note that the Cardano blockchain is currently in the early stages of its development and its future success will heavily depend on the progress of its roadmap. Cardano is currently working on implementing its Shelly upgrade which will bring the network closer to its goal of becoming a fully decentralized proof-of-stake (PoS) network. The Shelly upgrade will also enable staking, which will allow ADA holders to earn rewards for locking up their tokens and participate in the network’s consensus.
Furthermore, Cardano is also working on the Goguen release which will bring a native token standard to the Cardano blockchain as well as a virtual machine for running smart contracts on the network. This will open up the network to a wide range of potential use cases including the creation of dApps and the development of decentralized finance (DeFi) protocols.
In conclusion, it remains to be seen whether the whale activity observed in the Cardano market will be enough to boost the price of the asset in the near term. Nevertheless, the progress of the Cardano blockchain’s roadmap and the potential use cases of the network are all factors that can contribute to the long-term success of the asset.