Whales Acquire 120 Million Cardano Tokens: Impact on ADA Price

Cardano (ADA) continues to trade below the $0.25 mark, while Bitcoin and some altcoins are experiencing double-digit growth. Key on-chain indicators raise questions about potential price surges for ADA. One of the critical factors is the acquisition of 120 million Cardano tokens by whales.

On April 15, Cardano reached its yearly peak at $0.46, thanks to a successful Ethereum network upgrade. This event sparked interest in the coin, especially among investors with a minimum balance of 1 million ADA. In the period from April 10 to May 20, they sold 1.98 billion coins, leading to a 24% price decrease for ADA.

However, very recently, from October 1 to October 20, the same cohort of investors returned and acquired 120 million Cardano tokens, totaling around $30 million. This increased the overall balance of whales to 21.36 billion ADA, which is the highest since reaching the yearly peak of $0.46. It's essential to note that their total token count at the time of the yearly peak was 21.88 billion.

Such a maneuver by whales raises questions about potential consequences for the ADA price. If this trend continues, smaller investors may decide to follow the example of significant players and start acquiring tokens as well. However, for a more in-depth understanding of the impact of this acquisition on the ADA price, other factors need to be considered, such as user network activity.

The number of active addresses is another critical factor influencing the ADA price. Previously, the price surpassed the $0.40 mark shortly after the number of active addresses exceeded 135,400.

However, in the last two weeks, user activity on Cardano has decreased, and on October 19, only 28,538 wallets that conducted transactions were registered. This decline in interest in ADA most likely explains the recent token price stagnation.