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Despite a technical analysis that predicts a 35% price fall by September 2022, ADA stockpiling continues. Some of the wealthiest investors in Cardano have accumulated the token due to the decrease in price this year.
Cardano Sharks On A Buying Binge
Furthermore, wallet addresses having between 10,000 to 100,000 ADA have increased their holdings. The sharks bought over 79.1 million ADA ($37.7 million) between June 9th and July 9th.
Moreover, sales of Cardano whales with a capacity of 100,000 to 1,000,000 ADA have ceased. Whales and sharks can predict future token movements by holding more ADA.
Consequently, their action results in more volatility or lower liquidity. Also, they can compel investors or small traders with fewer ADA tokens to imitate their moves.
Meanwhile, the Cardano sharks’ latest purchasing binge suggests they’ve been preparing for a rapid price comeback. ADA is trading roughly 85% below its record-breaking high of $3.16 set in September last year.
Another positive event is a huge technical update scheduled for the end of July, after a testnet rollout on July 4th. Meanwhile, the Cardano team gave no exact date for the hard fork, known as Vasil.
The upgrade will increase scalability for Cardano’s dApps. Also, it can speed up block generation and introduce interoperability between Cardano’s sidechains.
The “Descending Triangle” In ADA’s Price
Although sharks and whales are accumulating ADA, the price chart speaks differently. According to Cointelegraph’s price analysis, ADA might witness a greater fall in the future.
Since May 8th, ADA’s price has been forming a declining triangle pattern. Descending triangles usually finish when the price moves opposite to its earlier trend. Thus, there is a chance that the price of the Cardano token will fall to $0.31.
As per DeFiLlama statistics, the TVL on Cardano has decreased to about $125 million. At the start of 2022, it was over $350 million. This is a result of the continuous bad crypto market and falling prices.
Furthermore, the Vasil update will give certain crucial characteristics to the Cardano blockchain. This would allow the establishment of further projects on the protocol.
Additionally, it will offer a way to upgrade current dApps. These include potent scripts, transactional capability, and faster performance.
Alongside a polished Plutus interpreter, the Vasil update will also offer cryptographic primitives changes. This would help to increase blockchain compatibility on the network.
Since Cardano’s Alonzo update in 2021, the project now supports twelve protocols. Also, it ranks 28 on DefilLlama’s list of smart chains.
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