Cardano’s ADA has been fairly bearish on the charts over the last 12 month. However, its fortunes might be about to change now that whales are finding it attractive at lower prices.

Cardano’s supply distribution metrics on Santiment seemed to provide a clear look at what the top addresses have been doing during the bear market. According to the same, addresses holding between 10,000 and 100,000 ADA coins have been consistently accumulating in the last 30 days. In fact, their balance grew from a monthly low of 48.92% on 11 June to 49.75% by 9 July.

Meanwhile, addresses holding more than 10 million ADA coins added to their bags on 16 June. Figures for the same rose from 48.74% to 50.1% by 21 June. At the time of writing, however, these balances had fallen to 49.75%.

Source: Santiment

Addresses holding between 100,000 and 10 million coins reduced their balances significantly during the month. However, those holding between 100,000 and 1 million ceased their sell-off in favor of some accumulation over the last two days. Most of the remaining selling pressure is from addresses holding between 1 million and 10 million ADA coins.

They currently hold around 16.75% of the total ADA supply after reducing their supply from 17.04% on 5 July.

In total, whales that have been accumulating in the last 30 days, increasing their balances by roughly 79.1 million ADA. The larger addresses (holding more than 10 million ADA) notably increased their holdings in the first week of July.

As #Cardano‘s price performance has stayed particularly underwhelming in 2022, addresses holding 10k – 100k $ADA are now accumulating. They’ve added 79.1m $ADA to their collective bags in 30 days. Meanwhile, 100k – 10m whales have ceased their dumping. https://t.co/ucHo0RjwfB pic.twitter.com/dqcdTj0uHN

— Santiment (@santimentfeed) July 9, 2022

Are ADA bulls preparing for another run?

The accumulation of whales is a sign that bullish pressure might be building up. This can be further supported by an increase in whale transaction count since the start of July. The same was attached to a slight uptick in ADA’s price in the first week of July – Confirmation of the bullish pressure.

Source: Santiment

This bullish outlook can also be supported by multiple support retests near the $0.45-price level. The price has been bouncing back from the same level since May, confirming a strong buy wall.

Source: TradingView

Conclusion

ADA’s bullish activity and buy wall suggest that it is ripe for a significant upside on the charts. This will, however, depend on whether the market will maintain its favorable sentiment.

After facing strong selling pressure over the last weekend, Bitcoin is back above the $40,000 level once again. As of press time, Bitcoin is trading 4% up at a price of $40,536 and a market cap of $770 billion.

As the BTC price slipped under $39,000 late Sunday, it seems that whales turned active to buy the dips. citing data from on-chain platform Santiment, Ai Martinez reports:

Bitcoin whales took advantage of the recent downswing to buy 40,000 $BTC, worth $1.6 billion! Data from @santimentfeed shows that addresses with 10,000 to 100,000 BTC increased their holdings by nearly 2%, while prices dropped from $39,900 to $38,200.

On the other hand, it seems that the short-term BTC holders have been losing patience during the recent price consolidation. Data from IntoTheBlock shows:

Bitcoin short-term holders continue to decrease their positions. These traders – addresses holding <1 month, tend to follow the price action, and in many cases sell at a loss. The balance held by traders is at the lowest value since Jan 18, as they now hold 1.49m BTC.

What’s Ahead for Bitcoin?

Bitcoin has been showing major price movements in the range of $35,000-$45,000. Thus, this could turn out to be just another price jump and nothing decisively can be said at the moment.

However, we have some interesting developments lined up for Bitcoin investors ahead of this week. Australia is set to get its first spot-Bitcoin ETF this week on April 27 which will be listed on the CBOE equities trading exchange. Further as per market estimates, this could see net inflows of $1 billion and above.

Another positive trigger for Bitcoin could be that the illiquid BTC supply has been growing very fast. Citing data from Glassnode, analysts at Blockforce Capital report that a “massive” number of BTC coins have been moving off exchanges. This supply is going “offline” and into the cold storage. In a note, the analysts wrote:

“We have only seen this level of outflow from exchanges four previous times since the start of 2018. Three of those instances correlated with a sharp upward movement in price not too long after.”

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.