Whales are increasing their Cardano holdings, and are now controlling around 6.71% of the total supply.
The number of investors buying ADA futures contracts also far outweighs those selling, indicating bullish sentiment.
Cardano's TVL and daily trading volume are rising, indicating that network usage is growing.
The daily active addresses on the Cardano network have dropped significantly since early May.
ADA's price is currently below $0.50, but a break above $0.52 could confirm a bullish trend.
The crypto market slowly but surely is turning green.
This means that the bulls, the whales and even the shrimp and sharks are getting involved once again.
Amid this sea of rising prices and steady greens though, we have assets like Cardano, showing all the signs that commonly present themselves before an explosive rally.
Let’s see what’s been up with ADA recently.
According to recent market dynamics highlighted by IntoTheBlock, Cardano's whales are getting back into action, and have been causing speculation about the cryptocurrency.
In a recent tweet, the on-chain data monitoring platform highlighted that Cardano whales—particularly the ones holding between 100 million to 1 billion ADA—have started to increase their holdings.
IntoTheBlock also notes that over the last month, these whales have bought 11% more of this cryptocurrency.
11% of ADA’s supply
Their influence over the cryptocurrency has now become so massive, that they now control a staggering 6.71% of the total ADA supply.
The influence of whales on the price of a cryptocurrency is far-reaching, in that when the whales make moves, the shrimp and fish tend to follow.
We can already see this happen on the Coinglass dashboard for Cardano, where the number of ADA perpetual futures longs (buys) have been overshadowing the shorts (sells) since 9 May:
The ADA/USDT long/short ratios
Moreover, there has also been a noted pump in the Cardano network’s TVL, indicating that investors, developers and users are starting to jump in on the network’s stability and potential.
Cardano’s TVL uptick
We also have an uptick in the cryptocurrency’s trading volume, with around $2.57 million transacted on the network’s defi protocols in the last 24 hours.
There might be some issues with Cardano though.
For example, data from Santiment shows a steady decline in daily active addresses, after a peak of 71,273 active addresses on 8 May.
The decline in daily active addresses
As of 20 May, the Cardano network has around 16,426 active addresses—which is still impressive but is a marked decline from earlier highs.
CoinMarketCap data shows that the cryptocurrency trades at around $0.46, which is still underneath the 50-cent mark.
Cardano’s price action
According to the charts, Cardano successfully broke above its medium-term moving average between 17 and 19 March as shown above.
This, in its own way, is a bullish sign for the cryptocurrency, considering its struggle to break above the ascending trendline shown.
We might need to see Cardano break above the $0.5226 mark for a bullish confirmation from here.
However, the behaviour of the whales and all the other encouraging metrics point towards an incoming Cardano surge.
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