Cardano’s (ADA) price drop this year has led some of its wealthiest investors to hoard the token.
Cardano “sharks” on a buying spree
In particular, addresses holding between 10,000 and 100,000 ADA, also called “sharks”, have added 79.1 million tokens (approximately $37.7 million as of July 9) to its reserves since June 9, according to data from Santiment.
In the meantime, Cardano “whales” holding between 100,000 and 1 million ADA have stopped selling.
Owning a larger amount of ADA makes sharks and whales powerful enough to determine the next trends of the token through increased volatility or decreased liquidity.. Additionally, they can force “fish”, or investors holding fewer ADA tokens, to copy their trades.
The recent wave of buying among Cardano sharks suggests that they have been positioning themselves for a strong price reboundespecially as ADA is trading nearly 85% below its September 2021 all-time high of $3.16.
Another potentially bullish catalyst is a major technical update scheduled for later this month, following a successful testnet rollout on July 4.
nicknamed “Vasil” hard fork could enable faster block creation Y improve the scalability of the Cardano decentralized application ecosystem. will also introduce interoperability between Cardano sidechains.
ADA Price “Descending Triangle” Could Spoil the Party
Supportive sentiment from Cardano whales and sharks contrasts with technical indicators suggesting more pain to come.
In particular, ADA price has been painting a “descending triangle” pattern since May 8. Descending triangles usually resolve after the price breaks out in the direction of its previous trend.
Therefore, Cardano token could be at risk of falling to $0.31 as illustrated in the chart above.
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