Cardano (ADA) has experienced a notable price rebound, coinciding with a significant increase in large-scale transactions. The cryptocurrency's value has risen by 4% in the past 24 hours, following a week-long downtrend. All thanks to whales.
ADA's price had initially fallen by 9.5% to a low of $0.33260. It has since recovered, posting a 6% increase from this trough.
This price movement aligns with a surge in high-value transactions. Data from IntoTheBlock (ITB) reveals that large holders, often referred to as "whales", moved 17.33 billion ADA in a single day - this volume equates to approximately $6 billion.
ITB's Large Transaction Volume metric, which tracks transfers valued at $100,000 or more, indicates a weekly transaction volume of $24.18 billion. This marks a substantial increase from the previous week's figures. The majority of these transactions occurred within a three-day period, with $6 billion moved on October 11 and $5.8 billion on October 10. The spike in whale activity appears to correlate with ongoing developments in the Cardano ecosystem. A recent report from InputOutput highlights Cardano's continued prominence as a blockchain development hub, following recent node upgrades to versions 9.2.0 and 9.2.1.
InputOutput's data shows that by September's end, 1,376 active projects were under development on Cardano. This underscores the platform's appeal to blockchain innovators. September also saw an increase of 80,000 minted native tokens and a rise of 1.34 million in total network transactions.
Despite these positive indicators, investor sentiment towards ADA has been predominantly negative, particularly on social media platforms. Cardano's founder, Charles Hoskinson, addressed this issue directly on X (formerly Twitter).
Hoskinson emphasised that the negative outlook does not reflect any shortcomings of the Cardano project. He asserted that the network continues to grow and develop. Hoskinson also criticised other cryptocurrency ecosystems, stating that Cardano remains committed to true decentralisation, unlike those aligning with corporate entities such as BlackRock and Wall Street.
Despite prevailing pessimism, ADA's price has maintained a key support level at $0.33. This offers some reassurance to bullish investors. On-chain metrics, including net network growth and positive momentum in the futures market, suggest a more optimistic outlook.
The recent surge in whale activity could potentially signal the beginning of a more sustained price increase for ADA. However, market participants remain cautious, given the volatile nature of cryptocurrency markets. As Cardano continues to develop its ecosystem and attract developer interest, the coming weeks may prove crucial in determining whether the recent whale activity translates into sustained price growth or remains a short-term anomaly.