Analysts from the company Santiment note an increase in activity on the Cardano network, which led to an increase in the ADA coin rate by 7% and reaching its maximum level in 2023. On Thursday, December 7, the ADA exchange rate reached $0.4554, and the market capitalization of the asset amounted to $15.5 billion dollars. The trading volume of the coin also increased by 26.23%. Analysts at Santiment suggest that this bullish ADA rally may be related to small traders selling their coins to large ADA holders, the so-called "whales".
Santiment experts say: "The market value of Cardano increased by 7%, even despite the general drop in cryptocurrencies on Wednesday. The reduction in the total number of addresses belonging to Cardano holders can be considered as a positive signal. Usually, such a reduction may indicate that small holders are giving up and selling their assets to large investors."
Research has shown that since November 18, the number of Cardano addresses with zero balance has almost reached a four-month high, but from November 14 to November 22, this number has significantly decreased. During this period, ADA was sold from 32,100 addresses. Some traders sold coins at a loss, which was probably beneficial to large investors. In August, Santiment also reported an increase in the number of Cardano wallets, which store more than 100,000 ADA, to 25,294 addresses, which is the maximum in 16 months.
Analyst and trader Ali Martinez drew attention to the fact that ADA follows the growth model typical for the period from 2018 to 2020, despite some fluctuations caused by the pandemic. According to his forecasts, if this model is maintained, ADA may reach a resistance level of $0.45. However, there is also a possibility that by the end of December, the Cardano cryptocurrency exchange rate will rise to $ 0.75.
Cryptanalyst Dan Gambardello recently suggested that the ADA rate could reach $11 during the next bullish trend in the crypto market, supported by the bitcoin rally.
