The fall in the price of Cardano (ADA) this year prompted some of its richest investors to deposit the signal.
Cardano sharks on buying frenzy
Addresses between 10,000 and 100,000 ADA, also known as “sharks”, have added 79.1 million tokens (~ $ 37.7 million from July 9) to their reserves since June 9, according to data from Santiment.
Meanwhile, Cardano’s “whales”, which sell between 100,000 and 1 million ADA, have stopped selling.
If large amounts of ADA are retained, sharks and whales are powerful enough to determine future signal trends through increased volatility or reduced liquidity. In addition, they can force “fish”, ie investors with fewer ADA tokens, to copy their trades.
A recent shark buying spree with Cardano suggests they are positioning themselves for a strong price rally, especially since ADA is trading almost 85% below the September high of $ 3.16.2021.
Another potentially bullish catalyst is a major technical upgrade scheduled for the end of this month, following the successful implementation of testnet on July 4th.
Read also: What does “Cleaning” mean for Bear Market?
Known as “Vasil,” the hard fork could accelerate blockchain creation and improve the scalability of Cardano’s decentralized application ecosystem. It will also introduce interoperability between Cardano side blockchains.
The ‘descending triangle’ in ADA price could ruin the party
The supportive attitude of whales and Cardano sharks contrasts with technical indicators which suggest that the difficulties ahead are greater.
In fact, the ADA price has been painting a “descending triangle” pattern since May 8. Descending triangles usually occur after a price break towards the previous trend.
So the risk of a Cardano signal falling could be as low as $ 0.31, as shown in the chart above.
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