The drop in the price of Cardano (ADA) this year has prompted some of its richest investors to hoard the coin.
Cardano Sharks on a Shopping Spree
Notably, between 10,000 and 100,000 ADA addresses, also known as “shards,” have added 79.1 million tokens (about $37.7 million as of July 9) to their reserves since June 9, according to data from Santiment.
Meanwhile, Cardano “whales” holding 100,000 to 1 million ADA have closed the sale.
Holding large amounts of ADA empowers sharks and whales to determine the upcoming trend of a coin either through increased volatility or reduced liquidity. Additionally, they can “fish” or force investors holding fewer ADA tokens to copy their trades.
Recent buying amongst the Cardano shards indicates that they are positioning themselves for a sharp price rally, especially as ADA is down almost 85% from its September 2021 all-time high of $3.16.
Another potential bullish catalyst is a major technical upgrade later this month, following the successful implementation of the testnet on July 4.
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Called “Vasil,” the hard fork could lead to faster block creation and improved scalability for Cardano’s decentralized application ecosystem. It will also introduce interoperability between Cardano’s sidechains.
ADA Price “Descending Triangle” Could Spoil the Party
Cardano’s supporting whale and shark sentiment is in contrast to technical indicators indicating more pain ahead.
Notably, ADA price has been drawing a “descending triangle” pattern since May 8. Descending triangles usually resolve after price breaks in the direction of their previous trend.
Therefore, as shown in the chart above, the Cardano coin is prone to drop to $0.31.
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