Are the metrics bullish or bearish for popular altcoin project Cardano (ADA)? According to some metrics highlighted by popular crypto analytics firm Santiment, the latest moves by whales, the big players in the cryptocurrency markets, could be bullish for Cardano (ADA), a decentralized blockchain platform.
What do the metrics say for the popular altcoin?
In a tweet shared by renowned crypto analytics firm Santiment on the subject, the firm claims that Cardano (ADA) whales, major crypto market investors, have been refilling their portfolios with massive amounts of ADA in recent weeks. The tweet in question states:
Cardano whale addresses holding 10k to 100k ADA have historically done a pretty outstanding job at search tops. And in the last 5 weeks, these addresses have added about 6% of the total ADA supply to their portfolios.
Data firm Santiment further elaborates on the matter on its website, discussing the impact of negative funding rates on possible future price movements:
Typically, these negative funding rates are a promising sign that the crowd expects prices to drop. This often leads to short liquidations that can push prices up. It goes without saying that these negative funding rates are a great sign.
Santiment’s ADA analysis
Santiment concludes the ADA analysis by looking at historical activity among whales with transactions greater than $100,000 to gauge when Cardano might return to all-time highs. The analysis includes the following statements:
We see major clusters of whale trading occur at local peaks in both May and September at all-time highs. Expect a spike in these trades as a great alpha where Cardano will see a long-term return.
At the time of writing, Cardano is down 1.82% and is trading at $0.87. The 7th-ranked crypto-asset saw volatile price action in the first two months of 2022, climbing from the $1.30 range to $1.59 in mid-January before dropping as low as $0.82 last Monday.