According to Santiment data posted by crypto analyst Ali Martinez, a significant number of idle ADA coins appear to be exchanging hands. Roughly 1.12 billion ADA have returned to circulation, drawing from transaction volumes. The analyst noted, “Such market behavior tends to be followed by a spike in volatility.”
Such market behavior tends to be followed by a spike in volatility. pic.twitter.com/TyEymoOe12
— Ali Martinez (@ali_charts) May 3, 2022
On-chain data also indicate that whales have gone on a massive accumulation spree after a seven-month dumping stretch. Cardano large holders, or millionaire whales possessing between 1 million and 10 million ADA, have added 196 million ADA to their portfolio in the last five weeks.
🐳📈 #Cardano whale addresses holding 1M to 10M $ADA are accumulating their bags these past 5 weeks (196M more $ADA) after a 7-month stretch of dumping (-1.7M less $ADA). The 9th largest market cap asset recently hit prices last this low in February, 2021. https://t.co/co8BcqHJAF pic.twitter.com/OXpbu3KSXp
— Santiment (@santimentfeed) May 3, 2022
Following a steady decline, the ADA price fell to levels last seen February 2021, representing 15-month lows. Whales typically use periods of dip or consolidation to buy at a discount, accumulating more with the hope of a price rebound.
ADA price remains undervalued
The Cardano network has attained significant milestones in recent months. Recently, Cardano’s IOHK shared statistics regarding network growth.
— Input Output (@InputOutputHK) May 2, 2022
Currently, 925 projects are being built on Cardano, up from around 900 previously. Fifty projects have recently launched on Cardano, while the number of NFT projects is at 5,441. Github connects also totaled 2,995, while Cardano native tokens stood at 4.5 million. The number of wallets holding ADA token recently surpassed the 3.6 million count.
Despite the progress made in network growth, ADA remains undervalued. According to CoinMarketCap data, ADA was changing hands at $0.79 at the time of publication, slightly up 1.51% in the last 24 hours and down nearly 7.59% in the past week.
Cardano’s price faced a steady drop after setting all-time highs of $3.16 in September 2021 following the announcement of the Alonzo hard fork. At its present price, ADA remains down 74.51% from its record highs.
As covered by U.Today, the ninth-largest cryptocurrency might have entered a historical ”buying opportunity” zone, according to the MVRV Divergence. According to data provided by on-chain analytics firm Santiment, Cardano has reached a point where ADA prices historically rise per the 30-day MVRV divergence.