Cardano whales hold more and more ADA
Cardano (ADA) whale holders have started accumulating ADA as the coin’s trading volume comes from whale wallets. Many of these large holders are still losing money on their investments. Meanwhile, the project is preparing for a major network upgrade, Ouroboros Genesis, designed to enhance its resilience and scalability.
Source: iohk.io
Cryptocurrency markets have been through turbulent times, with price and investor sentiment fluctuating. Amid this instability, the behavior of whale wallets that hold large amounts of a particular digital asset can provide valuable insights into market trends and investor confidence. The recent rise in Cardano whale wallet holdings, coupled with the upcoming network upgrade, has caught the attention of market analysts and enthusiasts.
Cardano whales accumulate against losing positions
According to the on-chain data analysis platform Santiment, wallets holding between 100 million and 1 billion ADA tokens have accumulated about 11% of ADA in the past 30 days. Therefore, these whale wallets now hold a total of about 6.5% of the total ADA supply.
Source: Santiment
However, this accumulation is conditional — many of these whale wallets are currently in a losing position and are still “losing money” in terms of the value of their investments. Cardano’s 30-day market value to realized value (MVRV) ratio shows that buyers who purchased ADA during this period are holding losing positions, and as of now, the ratio is -9.11%.
Ouroboros Genesis: Strengthening Cardano’s Network
Meanwhile, Cardano founder Charles Hoskinson highlighted the upcoming Ouroboros Genesis upgrade. The upgrade is designed to enhance the resilience and scalability of the network. Ouroboros Genesis expands on the previous Ouroboros protocol versions. In addition, it introduces several enhancements to protect network nodes, especially new or reconnected nodes.
Source: X
The upgrade introduces several key features, including ledger nodes, lightweight checkpoints, limits on eagerness, genesis density disconnects, limits on patience, and genesis state machines. Specifically, these mechanisms are designed to prevent blacklisting, a situation where a node is cut off from the rest of the network. They are also designed to enhance network security by ensuring that nodes commit to legitimate blocks, thereby maintaining the integrity of the Cardano blockchain.
ADA shows strong daily gains despite bearish market indicators
As of May 17, Cardano (ADA) is trading at $0.4813, up 6.03% over the past day. Its market capitalization is $17.18 billion, ranking tenth among cryptocurrencies, with a 24-hour trading volume of $465.62 million. The price of ADA has stabilized around $0.45, with little volatility.
ADA/USD 1-hour price chart. Source: TradingView
Technical indicators show $0.42 as an immediate support level for ADA. The relative strength index (RSI) shows a weak bearish trend around the neutral line. Despite the recent gains and accumulation by whale wallets, the number of new ADA holders has stagnated. Investors should closely watch for a break above $0.50, which could signal a stronger bullish trend.
In conclusion, as the Cardano ecosystem continues to grow, with whale wallets accumulating ADA and key upcoming network upgrades, market participants will be keeping a close eye on developments. These observations will provide insights into the project’s trajectory and potential impact on its native cryptocurrency.