What happened?
After a difficult period when the founder of Cardano was involved in insider trading rumors and its token, ADA, hit a 5-month low, things are turning around. The derivatives market data indicates a rising interest in Cardano, with large investors, known as whales, beginning to accumulate more ADA tokens. Data from Santiment shows these whales have increased their holdings from 18.63B to 18.79B tokens. CoinGlass data also reveals that open interest is increasing, nearing its all-time high of 1.87B.
Who does this affect?
This situation primarily affects Cardano token holders and interested investors. The rise in ADA token accumulation by whales signifies a change in market sentiment, suggesting that these large investors believe in the potential recovery of Cardano. The increase in open interest indicates that more traders are entering into futures contracts, betting on the future price of ADA, which could further affect its price movement.
Why does this matter?
This matters because it suggests a potential turnaround for Cardano in the market. The increase in ADA acquisition by whales and the rise in open interest points towards growing confidence in the coin. If this trend continues, Cardano’s price could potentially recover from its recent lows, making it a possible investment opportunity. The shift in sentiment can significantly impact the cryptocurrency market, specifically the altcoin sector where Cardano is a major player.