Cardano Jumps 47% as Whales and Long-Term Holders Double Down on ADA

Cardano’s native coin, ADA, has surged by 47% over the past seven days, defying this week’s market volatility. 

The double-digit price rally comes as whale accumulation increases and investors extend their holding time, signaling strong confidence in the asset.

ADA Supply Shrinks as Whale Accumulation and Long-Term Holding Surge

According to Santiment’s data, Cardano whales that hold between 10 million and 100 million ADA coins have significantly increased their holdings over the past week. During that period, this whale cohort has acquired 220 million coins, valued above $192 million at current market prices. 

ADA Supply Distribution. Source: Santiment

At press time, the group of large investors collectively holds 12.74 billion ADA, marking their highest accumulation in six months.

When whales increase their holdings like this, it drives upward price momentum by reducing the available supply in the market. This trend may also trigger FOMO (fear of missing out) among ADA retail investors, leading to increased buying pressure and further price appreciation. 

Additionally, on-chain data has shown a notable increase in ADA’s average holding time among investors over the past week. This suggests a shift towards long-term conviction rather than short-term trading for quick profits. According to IntoTheBlock, the holding time of all ADA coins transacted over the past seven days has increased by 78%.

ADA Holding Time Of Transacted Coins. Source: IntoTheBlock

The holding time of an asset’s transacted coins tracks the average duration tokens are kept in wallets before being sold or transferred. 

Longer holding periods such as this reduce the selling pressure in the market. It reflects stronger conviction among ADA holders as they choose to keep their coins rather than sell them. 

Can It Push Past $0.94 to a Three-Month High?

On the daily chart, ADA’s rising on-balance volume (OBV) confirms the surge in demand. This is currently at 52.56 billion, climbing 2% since March 1. 

This momentum indicator tracks buying and selling pressure by adding volume on up days and subtracting it on down days. When it rises during a rally, it signals strong buying demand, suggesting the price increase is backed by strong demand and may continue.

If ADA’s price uptick continues, it could break through the resistance at $0.94 and trade at a three-month high of $1.32.

ADA Price Analysis. Source: TradingView

On the other hand, if demand falls, ADA’s price could fall to $0.72.