The price of the native token of smart contract platform Cardano, $ADA, has increased by more than 10% so far this year, coinciding with the revival of whale accumulation on the cryptocurrency’s network.
According to on-chain analytics company Santiment, addresses holding between one million and one hundred million ADA (between around $270,000 and $27 million at the time of writing) might be a key validator for a future price breakout.
After selling almost 560 million $ADA in the last two months of 2022, these whales have resumed accumulation this year, acquiring 217 million tokens to their holdings.
It’s important to remember that the price of any asset is ultimately decided by supply and demand dynamics, hence the activities of a group of holders shouldn’t be used as a substitute for fundamental analysis.
As reported by CryptoGlobe, the cryptocurrency community has set an optimistic price objective for $ADA this month, apparently taking the network’s expanding usage into consideration. Approximately 3,400 people in the cryptocurrency community predict that the smart contract platform’s price will reach $0.495 by the end of January, marking an increase of 83% from its current level of $0.27.
It should be noted that the prediction made by the crypto industry may not come true at all. According to the site, the community’s historical accuracy is little over 41%, with recent statistics indicating that it was closer to 60% in September and October 2022, before dropping to 6.8% in December.
Cardano may be “very cheap” according to a study by the on-chain analytics company Santiment. Findings indicate that shark and whale addresses (those with 100,000 to 10,000,000 tokens) have been aggressively buying up ADA during the last six weeks.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.