Cardano Surges 47% as Whales Boost Holdings

Cardano 's native coin ADA has surged 47% over the past seven days. The cryptocurrency defied broader market volatility throughout the week.

Large investors have significantly increased their stakes. This comes alongside growing evidence that holders are keeping the asset longer, suggesting strengthened confidence in the cryptocurrency.

Data from analytics firm Santiment shows whales holding between 10 million and 100 million ADA coins have substantially increased their positions. These large investors acquired 220 million coins in the past week. That acquisition is valued at more than $192 million at current prices.

"At press time, the group of large investors collectively holds 12.74 billion ADA," according to Santiment data. This marks their highest accumulation level in six months.

When whales increase holdings at this scale, it creates upward price momentum by reducing available market supply. The trend may trigger fear of missing out among retail investors. This potentially leads to increased buying pressure and further price appreciation.

On-chain data shows a notable increase in ADA's average holding time. IntoTheBlock reports the holding time of all ADA coins transacted over the past seven days has increased by 78%. This metric tracks how long tokens remain in wallets before being moved.

Longer holding periods reduce market selling pressure. "It reflects stronger conviction among ADA holders as they choose to keep their coins rather than sell them," noted market analysts.

On the daily chart, ADA's rising on-balance volume confirms surging demand. The indicator currently sits at 52.56 billion, climbing 2% since March 1. This momentum tracker adds volume on up days and subtracts it on down days. Rising OBV during a rally signals strong buying demand.

If ADA's upward momentum continues, it could break through resistance at $0.94. This would put it on track for a three-month high of $1.32. However, analysts caution that falling demand could push prices down to $0.72.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.