Cardano (ADA) has witnessed a surge in profitable addresses, hitting heights unseen in 2021 amid a robust rally. Coinglass data reveals a notable upswing, with the percentage of profitable Cardano addresses reaching a two-year high at 39.5%, encompassing approximately 1.76 million addresses.
This surge arrives as Bitcoin’s recent surge triggered a bullish rally, instilling renewed optimism among ADA holders. Despite a majority of addresses (55.2% or 2.46 million) experiencing losses and a smaller portion (5.19% or 230K) hovering at a neutral break-even, the surge in profitable addresses highlights a resurgence of faith in ADA’s long-term potential.
Further amplifying this positive sentiment, on-chain metrics depict a significant increase in high-value transactions involving ADA, particularly those exceeding $100,000. This surge in substantial transactions suggests an escalating interest in Cardano among institutional investors and high-net-worth individuals.
However, despite reaching a six-month peak of $190 million in open interest, the prevailing market sentiment appears largely bearish, marked by investors cashing out at a profit.
Whale Interest in Cardano Rises
Ali, a crypto analyst, has noted a marked increase in whale involvement within the Cardano network. Analyzing on-chain data, Ali highlighted a substantial rise in big transactions—ADA transfers exceeding $100,000—over the past three months.
These transactions consistently achieve record highs, indicating a burgeoning interest in ADA from institutional entities and significant investors. Ali states this surge often serves as an early indicator preceding price surges within the ADA market.
This stems from the influence that whale movements, evident in heightened large transactions, wield over an asset’s value and market sentiment. The impact can vary based on whether these major holders acquire or dispose of their holdings.
For Cardano, recent heightened activity among major transactions coincided with a significant uptick in ADA’s market value, signalling a consistent surge across various timeframes. As per CoinMarketCap data, Cardano surged 21.2% in trade value over the last 30 days and marked an impressive year-to-date rise of 62.53%.
At its current trading value of $0.41, ADA hovers near the support level set at $0.39. With resistance noted at $0.41, a successful breach could potentially fuel a more robust bullish trend, propelling ADA toward $0.5 and possibly $1. Conversely, a downward shift below the support might indicate short-term profit-taking, potentially pushing the price down to $0.34, where possible support lies.
