Cardano’s native token (ADA) has performed well despite the downturn in the broader crypto market.
The token has seen a notable price gain amidst increased whale activity. ADA broke its month-long price resistance of $0.80 earlier today after a 14% gain in 24 hours, including a 24% rise in daily transaction volume to $2.27 billion.
Cardano 24-Hour Price Chart | Source: CoinGecko
According to current CoinGecko data, the coin is trading at $0.83. This rally is remarkable given that the global crypto market cap fell 1.2% to $3.22 trillion in the past day, per CoinGecko data.
Whale Transactions Fuel ADA’s Price
One key driver of this rally is a significant increase in Cardano whale trades. Data from the on-chain analytics platform Santiment shows that ADA transactions worth at least $100,000 hit 9,824 last week, the highest level in five months.
This increase in activity suggests a growing interest among institutional and large-scale investors. Moreover, open interest in ADA futures has reached $400 million, a first since August.
This trend adds to the asset’s bullish momentum.
Cardano is decoupled from the altcoin pack, nearly matching its 8-month high. Its price ratio against Bitcoin is also nearing an 8-month high. The last time we saw this level of ADA transaction and whale volume was in June, just prior to a +26% burst in the ADA/BTC pairing. pic.twitter.com/8EmEAySWaq
— Santiment (@santimentfeed) November 20, 2024
Profit-Taking Cools
Despite the rise in ADA’s price and trading activity, Santiment data also showed that dormant ADA has declined drastically, dropping from 69.3 million tokens on Nov. 16 to 30.5 million on Tuesday. Weekly on-chain transaction volume in profit has also decreased, falling from 36.4 billion ADA to 29.6 billion ADA in the last two weeks.
This shows that many investors keep their holdings in anticipation of additional gains. Nevertheless, experts caution that the rise in trading volume and open interest could aggravate volatility, given the current macroeconomic conditions, especially geopolitical issues such as the crisis between Iran and Israel and Russia and Ukraine.
How High Can ADA Go?
Prominent analyst Ali Martinez noted that ADA’s 134.5% gain in the last thirty days is consistent with historical patterns. Meanwhile, community development and prospective partnerships could contribute significantly to the token’s bullish momentum.
A prospective collaboration between Cardano and SpaceX, including hints from Charles Hoskinson, has fanned intrigue. While details are limited, such a partnership could also help boost whale activity and ADA’s price in the near term.
