Cardano [ADA]: A further recovery may be on the cards thanks to this…

Cardano seems to be returning to the level of demand it had before the altcoin suffered a terrible crash. The last few weeks have been particularly helpful in bringing back the community to ADA led by the biggest holders and influencers in the Cardano community – its whales.

Cardano whales egging on the rally

Since the rally of 14 March began, Cardano has risen by almost 55% to breach a crucial level of $1.214. This level has been repeatedly tested since December as both support and resistance.

Although the last two months have only seen it as resistance, testing it as support now would prepare ADA for rising further. This is crucial since the altcoin is yet to recover the losses that it has incurred since the beginning of this year.

YWCBCyzS

Cardano price action | Source: TradingView – AMBCrypto

Although part of the credit for this price increase goes to Cardano’s whales, which have been active since even before the rally began.

Up from the average of $7 billion in February, whales were conducting transactions amounting to as much as $83 billion towards the end of March.

ITB ada large transactions volume in usd 2022 04 04T08 41 15.090Z

Cardano whale transactions volume | Source: Intotheblock – AMBCrypto

Despite no groundbreaking ecosystem development observed recently on the network, these whales have been exhibiting a great deal of interest in the altcoin. The total holdings of ADA’s four whales have risen by 95% in 2 months totaling 9.8% (3.32 billion ADA) of the entire 33.74 billion ADA supply.

ITB historical concentration 2022 04 04T08 43 36.264Z

Cardano supply distribution | Source: Intotheblock – AMBCrypto

However, the recent few days have also invigorated retail investors’ interest along with the whales. 

As the network-wide ADA supply began observing profits instead of losses, the average Joe seems to have shifted their focus back to the altcoin.

Bitcoin BTC 14.10.59 04 Apr 2022

Cardano network wide supply in profit | Source: Santiment – AMBCrypto

The market value of the coin turned positive after almost two months for the first time last week and is continuing to incline, indicating the average ADA holder is observing good enough profits on their investment.

Bitcoin BTC 14.10.35 04 Apr 2022

Cardano MVRV ratio | Source: Santiment – AMBCrypto

Howbeit, the social presence, Cardano’s biggest weapon back in its time, is noticing a change in trend as Cardano’s appearance on these platforms is rising once again. Social dominance is close to 2%, which will prove to be a huge boon for the altcoin going forward.

You May Also Like