Cardano’s (ADA) price drop this year has prompted some of the wealthiest investors to accumulate the currency.
Sharks accumulate ADA
Addresses with between 10,000 and 100,000 ADA are also referred to as “Sharks”. These sharks have added approximately 79.1 million ADA tokens to their reserves since June 9. This equates to approximately $37.7 million, data from Santiment† Meanwhile, the Cardano whales, which have between 100,000 and 1 million ADA, have stopped selling their tokens.
Holding a larger amount of ADA makes sharks and whales powerful enough to determine the currency’s emerging trends. In addition, they can force fishes, or investors who have fewer ADA tokens, to do the same.
The recent shopping spree among the Cardano sharks indicates that they have positioned themselves for a sharp rise in prices. ADA is currently trading nearly 85% below its all-time high of $3.16 it saw on September 2021.
Another potentially bullish catalyst is a major technical upgrade scheduled for the end of this month. This upgrade can be implemented after a successful implementation of the testnet on July 4.
The hard fork, called “Vasil”, ensures that blocks can be made faster. In addition, it ensures that the scalability of Cardano’s decentralized application ecosystem can be improved. It will also usher in interoperability between Cardano’s sidechains.
The sentiment of Cardano whales and sharks contrasts with technical indicators pointing to more suffering in the future.
It is worth noting that ADA’s price has shown a pattern of a “descending triangle” since May 8. Descending triangles usually disappear after the price deviates from their previous trend. This is shown in the figure below.
ADA/USD daily price chart with ‘descending triangle’The Cardano coin is therefore at risk of falling further to $0.31, as illustrated in the chart above.