TL;DR

Cardano (ADA) hits its highest price since May 2022, surpassing 90 cents.
Big investors are accumulating ADA, with over $12 billion in the hands of whales.
On-chain activity and institutional interest point to a possible stability in ADA’s rally.

Cardano (ADA), the native cryptocurrency of the Cardano blockchain, has seen an impressive rally in price, reaching a level not seen since May 2022.

This increase has been marked by a 10.89% growth in the last 24 hours, taking it to $0.8892 per token, reflecting bullish behavior amid a broader recovery in the cryptocurrency market.

In fact, ADA’s value is up 22% this week alone, bringing its monthly performance to an impressive 152%.

This surge has resulted in a market cap of $30.85 billion, cementing ADA as the tenth-largest cryptocurrency in the world, according to CoinMarketCap.

One of the key factors driving this surge is the growing interest from large investors, known as “whales.”

According to Tagus Capital, large investors now control more than $12 billion worth of ADA.

On-chain activity also supports this trend, showing a 300% increase in large-volume transactions over the past two weeks, suggesting significant institutional involvement in this rally.

This behavior is a clear indication that interest in ADA is not only driven by small traders, but also by institutional players looking to diversify their investments in a growing cryptocurrency market.

Cardano’s rally comes at a time of growing optimism across the sector, especially with Bitcoin approaching $100,000, which has created a knock-on effect on other cryptocurrencies.

With capital migrating towards altcoins, ADA has gained the attention of investors looking to take advantage of bullish moves in altcoins while Bitcoin continues to struggle to maintain its recent momentum.

Furthermore, there is speculation that statements by Cardano founder Charles Hoskinson about possible collaborations with the United States government, especially with the Donald Trump administration, could be fueling optimism around the cryptocurrency, in view of the potential creation of more crypto-friendly policies.

Institutional interest and future prospects of ADA

The notable accumulation of ADA by whales and the increase in large transactions indicate that institutional interest is behind this rally.

Whales , which hold large amounts of ADA, tend to have a direct impact on the price due to the magnitude of their movements.

If institutions continue to accumulate the cryptocurrency, it could generate bullish pressure that favors a consolidation of prices around these levels.

The key to knowing whether this rally has a lasting impact lies in Cardano’s ability to maintain institutional interest over the long term.

If the blockchain continues to show progress in its development and continues to attract key partnerships, ADA could position itself as one of the most relevant cryptocurrencies in the altcoin space.

This, in turn, could trigger further adoption by both individual and institutional investors, allowing ADA to continue to consolidate its position among the largest cryptocurrencies.

In this context, ADA is at a crossroads. While the current growth is encouraging, investors should keep an eye on external factors that could influence the stability of its price, such as government regulation and the movements of other key cryptocurrencies.

However, the rise in institutional interest and recent improvements to the Cardano network make ADA one of the cryptocurrencies to watch closely in the coming months.

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Filed under: News - @ November 22, 2024 2:28 pm