Key points to remember
- A total of 69.09 billion ADA was traded on March 28.
- Such on-chain activity indicates institutional demand.
- Further buying pressure could push Cardano to $2.
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On-chain data reveals that both institutional players and whales have added significant amounts of ADA to their wallets.
Cardano whales are accumulating strongly
Institutional interest in Cardano appears to be picking up after ADA reclaimed $1 as support.
IntoTheBlock a reported a significant increase in on-chain activity on the Cardano network. The blockchain and cryptocurrency market analysis platform claimed that the number of large transactions worth more than $100,000 has increased by more than 5,000% since the start of the year.
A total of 69.09 billion ADA was traded on March 28 alone, representing 99% of the total on-chain volume. Such market behavior alludes to the activity of institutional players and whales, indicating how they can invest and position themselves.
Santiment discovered similar activity on the network. The behavioral analytics platform recorded a 1.7% increase in the number of whales on the Cardano network. About 42 addresses holding 1,000,000 to 10,000,000 ADA have been created since March 21.
Such an increase in the number of large investors behind Cardano may seem insignificant at first sight. But when you consider that these whales hold between $1.2 and $12 million in ADA, the sudden spike in buying pressure can translate into millions of dollars.
The growing interest in Cardano helped prices reclaim the psychological level of $1 as support. Now, the transaction history shows that the next hurdle to overcome is at $1.36, where over 690,000 addresses had already purchased over 6.41 billion ADA. Breaking through this supply wall could help the so-called “Ethereum killer” hit $2.
It should be noted that since the whales have increased their holdings over the past few weeks, they have been able to build a formidable floor of support at $1. Unless a black swan event occurs, this demand barrier could prevent Cardano from incurring significant losses.
Disclosure: At the time of writing this article, the author of this article owned BTC and ETH.