Whale transactions in Cardano (ADA) have recently risen to a four-month high following a huge sell-off that impacted the prices of practically all cryptocurrencies, including Bitcoin (BTC), the most valuable cryptocurrency by market capitalization.
Due to market capitulation, the price of ADA, Cardano’s native token, fell to $0.4 on May 12th, 2022. However, despite the current market condition, data from Santiment suggests that whales have been actively buying additional ADA to prepare for the upcoming Vasil hard fork, which is supposed to improve Cardano network performance.
Whale Transactions in Cardano (ADA) Reach 4-Month High
According to Santiment, the number of ADA whale (wallets with more than $100,000 in ADA) transactions increased to 1,085 earlier this month, the highest since January 2022.
According to Santiment, during the significant market fall, Cardano whales began many transactions, indicating that whales were attempting to profit from the dip, believing that the market would eventually recover.
Santiment tweeted, “Cardano’s whales showed a flurry of transactions yesterday as prices were bottoming out to $0.40, between 8am and 12pm UTC. These spikes have very commonly indicated price direction changes for ADA, and we’re monitoring further whale activity closely.”
It’s worth mentioning that, unlike when they were selling ADA, Cardano (ADA) investors have been keeping their holdings during the downward market. The increase in whale transactions occurred roughly five weeks after ADA bag holders began to accumulate again.
ADA has a median hold time of 121 days, according to data from Coinbase’s price pages. This means Cardano platform users keep their assets for more than four months before selling or transmitting them to another account or location.
According to the crypto exchange, a long hold time shows an accumulation trend, whilst a short hold time indicates an increase in token movement.