The decrease in the valuation of Cardano over the year has resulted in some of its richest investors accumulating a large section of the tokens.
Notably, any address that holds ADA between 10,000 and 100,000, is referred to as sharks and has already added close to 79.1 million tokens to its reserves since the 9th of June- as reported by data from Santiment. On the other hand, the whales of the cryptocurrency hold between 100,000 and 1 million ADA have already stopped selling.
Holding such a large number of tokens does make the sharks and the whales quite powerful enough to determine the upcoming trends of the token through the increased volatility or decreased liquidity. Additionally, they could also force the fishes- or those who hold fewer tokens of the cryptocurrency to start copying their trades.
Cardano Sharks are Waiting To Scoop Up More Tokens
This recent spree in purchase among the sharks of Cardano does hint that they have already positioned themselves for a rebound at a sharp price, with the trade of ADA currently below 85% of its record high of September 2021 at $3.16. One potentially bullish catalyst seems to be a major technical upgrade that has been slated for the end of July- after it goes through successful implementation of its testnet on the 4th of July.
The testnet has been dubbed Vasil, and this is a hard fork that would be allowing faster block creation- all the while improving the scalability of the decentralized application ecosystem of this cryptocurrency. This hard fork will also introduce interoperability between the sidechains of the cryptocurrency.
The sentiment of the supportive whales and sharks of Cardano does contract well with technical indicators- which entail more pain ahead for the cryptocurrency. Notably, the price of ADA has been painting quite a descending triangle pattern since the 8th of May. Descending triangles usually get resolved after the price breaks out in the direction of their earlier trend. Therefore, ADA could risk going down to as low as a price of $0.31.
