Significant number of idle ADA coins appear to be changing hands
According to Santiment data published by crypto analyst Ali Martinez, a significant number of idle ADA coins appear to be trading hands. About 1.12 billion ADAs have been put back into circulation, drawing on transaction volumes. The analyst noted, “Such market behavior tends to be followed by a spike in volatility.”
On-chain data also indicate that whales have gone on a massive accumulation spree after a seven-month dumping stretch. Cardano large holders, or millionaire whales possessing between 1 million and 10 million ADA, have added 196 million ADA to their portfolio in the last five weeks.
After a steady decline, the price of ADA fell to levels last seen in February 2021, representing 15-month lows. Whales typically use periods of decline or consolidation to buy discounted, accumulating more in hopes of a price rebound.
ADA price remains undervalued
The Cardano network has attained significant milestones in recent months. Recently, Cardano’s IOHK shared statistics regarding network growth.
Currently, 925 projects are being built on Cardano, compared to around 900 previously. Fifty projects have recently launched on Cardano, while the number of NFT projects is 5,441. Github logins also totaled 2,995, while native Cardano tokens stood at 4.5 million. The number of wallets holding an ADA token recently exceeded 3.6 million.
Despite the progress made in network growth, ADA remains undervalued. According to CoinMarketCap data, ADA was changing hands at $0.79 at the time of publication, slightly up 1.51% in the last 24 hours and down nearly 7.59% in the past week.
Cardano’s price has faced a steady decline after hitting all-time highs of $3.16 in September 2021 following the announcement of Alonzo’s hard fork. At its current price, ADA remains down 74.51% from its all-time highs.
As covered by U.Today, the ninth-largest cryptocurrency might have entered a historical ”buying opportunity” zone, according to the MVRV Divergence. According to data provided by on-chain analytics firm Santiment, Cardano has reached a point where ADA prices historically rise per the 30-day MVRV divergence.
