ADA Whale Accumulation Picks Up Amid An 8% Price Surge in 2 Days

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The recent trend of whale accumulation follows significant selloffs in the past 2 months.

Cardano (ADA) whale addresses (holding 1M to 100M ADA) have embarked on a massive accumulation rally, adding 217M+ ADA tokens to their bags since January 1. 

In the wake of the market-wide downturn and the unfavorable macro headwinds, these whale addresses undertook a distribution campaign that saw them sell off up to 568.4M ADA tokens in November and December last year. The recent switch in sentiments started at the beginning of the year, as highlighted by Santiment today in a chart.

📈 #Cardano is enjoying a mini surge at this hour, and addresses holding between 1M to 100M $ADA may be a main validator to watch for a price breakout. After dumping 568.4M coins the final 2 months of 2022, they have added back 217.2M $ADA to start 2023. https://t.co/4aVmr641Lh pic.twitter.com/6mSVYKYfpY

— Santiment (@santimentfeed) January 6, 2023

Data from the Santiment chart reveals that these addresses now hold 57.22% of ADA’s circulating supply, which translates to 19.7 billion tokens. Due to the increased accumulation trend, active addresses on the Cardano network have risen to 58,268, per data from Messari. Trade volume on Binance has also seen a gradual surge of late, as it hit a 3-week high of 148.81M ADA on January 4, signaling renewed investors’ interest.

Notably, Input Output Global recently disclosed some of Cardano’s achievements in 2022, which could have contributed to the renewed interest. These achievements include 1,100+ projects built on Cardano, 3.7M wallets on the Cardano chain, 4.8K smart contracts, and 56M total transactions.

2023 Positive For ADA So Far

ADA has gained 12.2% since the start of the year, winning four out of the past five sessions since January 1.

Following a meager 0.35% loss on January 3, ADA set out on one of its biggest intraday rallies in a while, closing January 4 with a 5.89% increase. This marked the highest intraday gain since the 16.13% increase on November 10, 2022. 

Despite the recent market-wide correction that has triggered a cascade of dips, ADA remains unfazed. With a 2% gain, ADA is the only gaining asset amongst the top 20 assets in the past 24 hours. The asset has also gained 11% against BTC in the past 7 days.

The sustained rally has also increased ADA’s market cap, currently at $9.44B. Consequently, the asset has overtaken dogecoin (DOGE) again to reclaim the eighth position in the market cap rankings. Notwithstanding, this position remains fragile, as DOGE currently has a market cap of $9.39B.

At the time of reporting, ADA is changing hands at $0.2734, slightly above its first crucial resistance at $0.2720 and a few cents away from the second resistance point at $0.2760. With ADA’s third resistance sitting at $0.2840, the asset needs to conquer two more resistance points to reclaim the $0.30 zone, which analyst Duo Nine believes is the pivot point required for a bullish price reversal.

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