The fall in the ADA price this year has encouraged some of its richest investors to accumulate the token. Wallet addresses holding between 10,000 and 100,000 ADA, also called sharks, have added 79.1 million tokens to their reserves.
Cardano whales that hold between 100,000 and 1 million ADA have halted selling. Holding a larger amount of ADA makes sharks and whales powerful enough to determine the token’s upcoming trends via increased volatility or decreased liquidity. Additionally, they can force fishes, or investors holding fewer ADA tokens to copy their trades.
The recent buying spree among the Cardano sharks hints that they have been positioning themselves for a sharp price rebound, especially as ADA trades nearly 85% below its 2021 record high of $3.16.
Another potentially bullish catalyst is a major technical upgrade slated for the end of this month, following a successful testnet implementation. Dubbed Vasil, the hard fork could allow faster block creation and improve scalability for Cardano’s DApp ecosystem. It will also introduce interoperability between Cardano’s sidechains.
