Can Cardano Bounce Back? Whale Activity Surges to $13.84 Billion Average

The price of Cardano (ADA) has dropped by over 30% in the past month. This decline has coincided with a broader market correction and left ADA holders far from impressed, given that the cryptocurrency remains a far cry from reaching its current all-time high of $3.10.

However, Cardano investors may have had their hopes of a bounce back boosted by an increase in whale activity involving the cryptocurrency. On-chain data shows that over the past seven days, the average large transaction volume for Cardano (ADA) reached a peak of $13.84 billion.

IntoTheBlock data shows that the reported value is around 33% of the total average large transaction volume on the Bitcoin network and more than 16 times the same value on popular memecoin DOGE. Dogecoin has around $866 million in average daily whale transaction volume.

Cardano whales are busy, with an average large transaction volume of $13.84B a day in the last 7 days.

For comparison, this is a third of Bitcoin's current volume, 5x as much as Litecoin's volume and over 16x that of Dogecoin! pic.twitter.com/xU2XMoEQbM

— IntoTheBlock (@intotheblock) April 29, 2024

Cardano has also recorded an increase in the frequency of whale transactions. On April 28, the network saw over 1,385 transactions that exceeded the $100,000 threshold. The total value of assets moved by holders within this category in the past seven days surpassed $45 billion.

Whale Activity Raises Hope for Cardano Holders

An increase in whale activity is generally considered a positive for a cryptocurrency project for several reasons. For one thing, it indicates that high-profile investors maintain an interest in the coin and may seize the opportunity of a market downturn to increase their position.

Evidently, in Cardano’s case, this substantial whale activity has yet to translate to an increase in price. Nonetheless, the figures breed confidence in investors, as an opposite outcome would have sparked fears that Cardano will drop even further as bearish market conditions worsen.

At the time of writing, Cardano is trading at around $0.451. ADA is trading close to a critical support zone, similar to Bitcoin, which is currently struggling to hold convincingly above the $62,000 mark. Analysts generally hold that the next few days will be crucial to the crypto market’s overall performance in the short term.

In the long term, however, the general consensus is bullish, with leading figures and historical data tipping Bitcoin to enter the six-figure mark within the next year.