Cardano was one of the hardest-hit altcoins in the cryptocurrency market, barely making a rally in the last round and falling quickly once the momentum shifted. Over the past year, the cryptocurrency has remained underperforming as investors seemed focused on unloading their coins to avoid further losses. But with the arrival of the new year, this trend appears to be starting to change, especially as investors return to the negotiating table.
Cardano sees renewed activity
According to on-chain tracking platform, Santiment, the Cardano network is starting to see some much-needed change when it comes to staking. The network saw a significant spike in activity as reported earlier in the week, indicating that sentiment towards the altcoin is starting to stir again.
Santiment’s data focused on Cardano wallets containing at least 10 million ADA, meaning these are whale wallets. This large group of investors began making more moves, quickly adding to their already massive holdings as the price of ADA continued to struggle.
According to the tracker reports, the number of wallets containing at least 10 million ADA has now risen to 424. This means that this is the first time in more than a month that this metric has moved, and translates into a 5.92% increase in whale wallets.
ADA investors are very optimistic
As Cardano whales return to the table, sentiment is starting to turn positive again. A previous report from Santiment showed that ADA investors remain fiercely bullish even though most of them are underwater. Data indicates that about 79% of all investors remain bullish and expect the cryptocurrency price to actually move upward.
Additionally, April has typically been quite bullish for Cardano price, with more green than red closes for the month historically. CryptoRank data puts April’s average ADA price returns at 14.1%, suggesting there could be some positive movement for the cryptocurrency.
The rise in whale size is also a net positive as these large purchases tend to reduce the supply available in the market. Thus introducing scarcity and pushing the price higher. However, the overall trend of the cryptocurrency market is still influential, which means that if the market moves higher, the possibility of the ADA price rising becomes higher.
Featured image from Dall.E, chart from TradingView.com
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