Over the past few days, many coins have seen price reductions of varying percentages, including Cardano, the 7th largest crypto by market capitalization. The price of Cardano (ADA) started to rise sharply this morning. Today’s stock price is up 4.2%. Nevertheless, ADA is not out of the woods yet. The $1.22-$1.23 resistance level seems to be too powerful. As of this writing, ADA is trading at $1.22.
Whale’s ADA Sales Are Decreasing
Cardano’s accumulation period persists as shark addresses continue to buy coins.
According to Santiment, an on-chain analytics platform, supply is shifting to high/whale level addresses, or those with over 100,000 ADA. This decrease in supply from large addresses is consumed by either the low-medium or high-medium levels, which gradually accumulate.
Dr. Shweta, owner and operator of two Cardano stake pools (KIBC1 and KIBC2) reported in February this year that the number of long-term holders of Cardano (ADA) increased by 32%. According to its latest Cardano crypto price prediction, when major crypto investors amass their Cardano holdings, the value of the ADA coin could to augment up to 25%.
Santiment advises that the low-medium (0 to 100 tokens) and high-medium (10 to 100 tokens) token holdings have increased significantly (100 to 100,000 tokens). The former now holds 0.128% of the amount of PoS tokens in circulation, while the latter holds an ATH of 16.8%.
Essentially, this dynamic speaks to a longer-term dispersion and decentralization of the largest native coin in the proof-of-stake blockchain.
Many cryptos fell
Last week, Thorchain (RUNE), Apecoin (APE) and Juno (JUNO) all declined by around 5% in market capitalization. Near (NEAR) is down 6%, Zilliqa (ZIL) is down 7% and ecash (XEC) is down 8%. Even though Stephen (GMT) is down 11%, it is still up over 200% from a week ago. Waves (WAVES) is the stock that fell the most today, with a drop of more than 13%.
Will ADA recover?
ADA is currently down 60.95% from all-time highs above $3. However, ADA has gained over 28% in seven days, hitting $1.21 today (April 4). During the same period, the total cryptocurrency market grew by 11%. Today’s price is a rebound from the April 1 lows of $1.10.
If this uptrend continues, it could signal the end of a long-term downtrend for Cardano that started in September last year at $3.1.
Tim Harrison, head of marketing and communications at Input-Output Global, says there are over 500 projects built on the Cardano blockchain, including NFT collections, new wallets, and DeFi loans.
As more and more solutions are launched on the network, Cardano becomes more attractive to institutional investors looking for real value rather than speculative rewards. New ADA products, such as C1, an Eth Virtual Machine compatible sidechain, are still in the works. Users can also easily move assets between the two blockchains.
According to CoinMarketCap, ADA is currently doing much better than all of the top 10 in terms of 24-hour gains, rising 4.2% to $1.21.