Massive Transfer of 120 Million ADA in Two Days: What Arehuge Cardano Investors Planning Next?
ADA Whales Strike Again: Are They Gearing Up for a Price Pump?
- Cardano whales have snapped up over $85 million worth of ADA in the last 48 hours.
- Is this move a precursor to a potential price surge fueled by positive news regarding the ADA ETF?
Heavy ADA Holdings
Noted analyst, Ali Martinez, revealed that Cardano whales have been on a shopping spree, purchasing 120 million ADA in the past two days. That's equivalent to a cool $85 million (at current rates).
Martinez's chart shows that these big guns prefer to hold between 100 million and 1 billion tokens. Right now, these whales collectively hold approximately 3.14 billion ADA, which amounts to around 8% of its circulating supply.
Smaller players often watch the moves of these colossal investors, who may decide to follow suit or ramp up their ADA exposure. It is also common speculation that these large investors might be privy to insider information about events that could influence the price, which could explain their strategic purchases (or sell-offs).
ADA ETF on the Horizon?
The hope among Cardano supporters is the potential approval of the first spot ADA ETF in the US. Grayscale, one of the companies eyeing this opportunity, is keeping fingers crossed.
A few weeks back, the US Securities and Exchange Commission (SEC) postponed its decision on the fund until July 15. The final thumbs up or down is expected before October 22.
At the beginning of the week, the chances of approval before the end of 2025 dropped to nearly 40%. However, in the last couple of hours, the odds have surged to 66%, providing a positive outlook.
The improved odds come almost immediately after the SEC endorsed a NASDAQ crypto US settlement price index, which includes altcoins like ADA.
Uptrend on the Horizon?
ADA is currently trading at around $0.70, marking a 5% daily increase but a 11% drop over the past month. However, glimmers of hope indicate a larger resurgence could be on the way.
For instance, ADA's exchange netflow has predominantly been negative in the last few months. This suggests that many investors have moved away from centralized platforms to self-custody methods, reducing immediate selling pressure.
At the same time, some well-known analysts have made bullish predictions about ADA's future price. For more insights, check out our article here.
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Sources:
- Cardano (ADA) Investors Stack More Than $85 Million in ADA in Two Days
- SEC delays decision on Grayscale’s ADA ETF proposal to July 15
- Cardano/ADA
- Grayscale Unveils Cardano Trust
Additional Insights:
- Whale Activity: Whales have been actively buying and selling ADA. Despite short-term volatility, their purchases often signal confidence in the long-term prospects. However, their sell-offs can lead to price drops.
- Market Sentiment: Whale activity can significantly impact overall market sentiment. A clear shift in whale accumulation could be necessary for ADA to regain traction.
- Potential Price Pump: Whale accumulation could potentially lead to a price surge if it reflects broader market confidence. However, sustained price gains may be challenging without a clear catalyst like ETF approval.
- ETF Approval: While no concrete connection exists between whale investments and ADA ETF approval, the approval of an ETF could generally boost investor confidence, potentially leading to a price increase. However, such approval must be officially announced and implemented to have a direct impact on ADA's price.
- In light of the revealed accumulation of ADA by whales, the speculation arises that they might be gearing up for a price pump, possibly driven by positive news regarding the ADA ETF.
- The improved odds of a potential ADA ETF approval in the US, following the SEC's endorsement of a NASDAQ crypto US settlement price index that includes altcoins like ADA, could enhance the technology's investment potential, contributing to a possible uptrend.
- The strategic purchases of ADA by whales, holding between 100 million and 1 billion tokens, might indicate their understanding of the technology's potential in the finance sector, making them valuable indicators for smaller investors when deciding on their investing strategies.
