Cardano’s ADA Coin Surges by 47%, Defying Market Volatility
In a remarkable turn of events, Cardano's native coin, ADA, has experienced a staggering 47% surge in value over the past week, defying the recent market turbulence.
The surge in price is attributed to the increasing accumulation by whales and a growing trend of long-term holding among investors, reflecting a high level of confidence in the asset.
Notably, data from Santiment reveals a significant rise in the holdings of Cardano whales who possess between 10 million and 100 million ADA coins. In the past week alone, this group has added a substantial 220 million coins to their portfolios, amounting to over $192 million at current market rates.
At present, these large investors collectively hold a total of 12.74 billion ADA, marking the highest accumulation they have recorded in the past six months.
The increased accumulation by whales has led to a reduction in the available supply of ADA in the market, driving a positive price momentum. This trend could potentially trigger FOMO among retail investors, leading to heightened buying pressure and a further appreciation in the coin's value.
Moreover, on-chain data highlights a notable uptick in the average holding time of ADA among investors, indicating a shift towards long-term conviction rather than short-term trading for quick gains. According to IntoTheBlock, the average holding time of all ADA coins transacted in the past week has surged by an impressive 78%.
This shift to longer holding periods helps alleviate selling pressure in the market, showcasing the strong conviction of ADA holders who opt to retain their coins rather than liquidate them.
In terms of price analysis, ADA's rising on-balance volume (OBV) on the daily chart confirms the surge in demand, currently standing at 52.56 billion and increasing by 2% since March 1. The rising OBV signifies robust buying demand supporting the price surge, potentially indicating a continuation of the uptrend.
If the current momentum persists, ADA could potentially breach the resistance level at $0.94 and reach a three-month high of $1.32. However, a decline in demand might see ADA's price retracing to $0.72.
As ADA continues to attract attention and gain momentum, the future looks optimistic for this flourishing digital asset.