- Cardano price is up 5% after a swirl of whale acquisitions on May 22.
- ADA Large Transactions soared to 12,360 on May 22, a 146% increase from the May 13 low of 5,020 whale transactions.
- Whale transactions exceeded 12,000 for the first time since May 2021.
- Despite the leap, the MVRV data shows that most Cardano investors still hold sizeable losses.
Cardano (ADA) price has recorded a daily rise of 5% to the current price of $0.371 after ADA whales performed a swirl of large transactions on May 22. The optimism has turned on-chain data in favor of ADA, showing that more bullish activity may manifest in the coming days, with Bitcoin (BTC) price action hinting at a positive short-term outlook.
Cardano whales spotted recording massive transactions
Cardano (ADA) whales were spotted conducting massive transactions on Monday, a move that has earned ADA a place among the best-performing Layer-1 (L1) tokens this week. Based on the chart below, the number of ADA-related transactions went as high as 12,360 on May 22, representing a 146% spike from the 5,020 whale transactions recorded on May 13.
IntoTheBlock's large transactions metric determines the daily number of transactions exceeding $100,000, with the above chart showing that the last time Cardano recorded such an enormous whale activity was around May 2021.
Considering previous Cardano price rallies have been preceded with increased activity among whales, ADA investors should expect more gains in the next few days.
Most ADA holders still recording net losses
Nevertheless, while Cardano price leaped, Santiment's Market Value to Realized Value (MVRV) metric indicates that most ADA investors still hold significant losses.
The MVRV metric determines investors' net financial position by comparing their purchase prices to the asset's current market value. From the chart above, with Cardano price at $0.371, investors who acquired ADA in the last 30 days are holding 5.331% in losses.
Typically, as investors avoid selling until the asset's price approaches its break-even point, ADA traders will likely continue consolidating their Cardano holdings over the next few days as they wait for the cost to equal revenue.
Cardano price could rally an additional 5%
Cardano (ADA) price could record more gains amid buyers' described level of bullishness. An increase in buyer momentum above the current price could see ADA break above the hurdles presented by the 100-, 50-, and 200-day Exponential Moving Averages (EMA) at $0.375, $0.378, and $0.393, respectively, before an extended rally to the $0.427 hurdle. In a highly bullish case, the altcoin could tag the $0.462 resistance level, denoting a 25% uptick from the current level.
ADA/USDT 1-Day Chart
Based on IntoTheBlock's Break-Even Price Distribution data, ADA could soon reclaim the $0.50 level last tested around September. Nevertheless, this would not be as easy as it seems, considering the formidable $0.423 to $0.695 zone where around 594,380 addresses that bought 6.71 billion ADA could sell once they break even at $0.50, unwittingly provoking a pullback.
Accordingly, the bullish outlook for Cardano price could be short-lived if ADA drops below $0.342. However, the 371,400 investors that bought 3.12 billion ADA at the minimum price of $0.316 can offer some support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.