Due to whale dumping and a broader crypto crisis, Cardano (ADA), the native token on the namesake blockchain, recently plummeted to a more than one-year low. However, the token’s reduced pricing is luring huge whales to accumulate, setting the stage for a future rally.
The price of ADA is currently $0.7919, which is near its lowest level since June 2021. This year, the token has lost approximately 40% of its value, making it the worst performance among the top ten cryptocurrencies.
On-chain data, however, suggests that ADA’s near one-year low appeared to be the token’s bottom. It’s presently up around 6% from its low, and whales appear to have been accumulating over the last five weeks.
ADA Price Set for a Rally?
According to data from blockchain intelligence firm Santiment, ADA whales have been buying more than $196 million ADA in the last five weeks, indicating that they have gone into accumulation mode. Whale addresses having 1 million to 10 million ADA, according to Santiment, were the ones accumulating.
This buildup follows a seven-month whale dumping frenzy that saw ADA prices plummet over 300 percent from a record high in September 2021.
However, ADA still has to deal with low market mood, rising inflation, and concerns about interest rate hikes by the US Federal Reserve.
According to on-chain data, the number of daily transactions on the Cardano blockchain climbed by roughly 14% in April. The number of active addresses rose over the course of the month, indicating that the blockchain was continuing to attract new users.
With its inclusion in a Grayscale fund, ADA has received considerable institutional interest throughout the year.
Recent ADA trading patterns also revealed that large trading houses were starting to move more of the token, with deals exceeding $100,000 accounting for roughly all of the daily volumes.