Cardano has recently broken away from the rest of the cryptocurrency sector with a bullish surge as on-chain data shows buying from key investors.
Cardano Sharks & Whales Have Been Accumulating For A While Now
According to data from the on-chain analytics firm Santiment, the large addresses on the Cardano network have been participating in accumulation recently. The indicator of relevance here is the “Supply Distribution,” which tells us about the amount of supply that a given wallet group is holding right now.
Investors or addresses are categorized into these cohorts based on the number of tokens that they are carrying in their balance. The 1 to 10 coins group, for instance, includes all wallets who own between 1 and 10 ADA.
In the context of the current topic, the address range of interest is the 1 million+ coins (with the upper limit being infinity). At the current exchange rate of the cryptocurrency, the cutoff for the group converts to about $762,000. As such, the only traders who would fall inside this cohort would be the large ones.
The range in fact contains two of the key Cardano investor groups: sharks and whales. The larger an investor’s holdings get, the more influence that they hold in the market, so these two cohorts with their massive holdings can be worth keeping an eye on.
Their behavior may not always directly end up influencing the cryptocurrency’s price, but it does at least provide information about how the sentiment is like among these humongous entities.
Below is the chart shared by the analytics firm, that shows the trend in the Cardano Supply Distribution for the 1 million+ coins group over the last few months.
The value of the metric appears to have been riding an uptrend in recent months | Source: Santiment on X
As is visible in the above graph, the Cardano Supply Distribution for the wallet range has been following an upward trajectory since November 2023, implying the large investors have constantly been adding to their holdings.
In total, the asset’s sharks and whales have collectively added 1.41 billion tokens to their addresses during this period, which is equivalent to 2.35% of the entire ADA supply in circulation.
The fact that the key holders of the coin have been acting as consistent buyers for a while now is naturally a bullish sign for the cryptocurrency. Though, while this trend has developed in the indicator, the ADA spot price has still been up and down in this window.
Nonetheless, the asset has enjoyed an overall surge of 107% since the shark and whale accumulation began. So far, these investors have displayed no signs of slowing down, so it’s possible that the outlook on Cardano may remain bullish for the near future.
ADA Price
Cardano has outperformed most of the top coins during the past week as the coin has seen a jump of around 2%, while the others have printed red returns. Following the bullish action, ADA is trading around $0.76.
Looks like the price of the coin has seen an uplift during the past couple of days | Source: ADAUSDT on TradingView
