Cardano (ADA) has experienced a significant recovery after falling below $0.50 earlier this week. Following a dip to lows near $0.48 on November 5th, ADA saw a surge of over 20%, reaching approximately $0.60 by November 10th.
Although the cryptocurrency has seen a slight decline of about 2% in the last 24 hours, settling around $0.58, a bullish trend may be emerging as major ADA investors have accumulated nearly 1% of the total supply this week.
Whales Increase ADA Holdings
Data from the on-chain analytics firm Santiment indicates that Cardano's major holders have substantially increased their positions following the price drop below $0.50 last week. Over the past four days, wallets classified as whales and sharks, those holding between 100,000 and 10 million ADA, have collectively acquired 348 million ADA. This accumulation, valued at approximately $204.3 million, represents about 0.94% of Cardano's total circulating supply.
This heightened buying activity suggests a renewed sense of confidence among significant investors, even amidst recent market fluctuations. Historical patterns have demonstrated that such accumulation phases often precede price recoveries, provided the broader market sentiment remains stable.
Crypto trader Trend Rider observed in a recent post on X that ADA is currently testing the lower boundary of its trend band. The trader emphasized that ADA needs to reclaim the $0.70 level to confirm a reversal back into bullish territory. Currently, ADA is exhibiting signs of consolidation after a robust recovery from its early November lows. The analysis indicates that while short-term momentum has improved, the overall trend remains neutral to bearish unless the price can successfully break and sustain above the $0.70 zone.
Cardano Ecosystem Performance in Q3
Beyond its price movements, Cardano's network fundamentals also demonstrated considerable strength during the last quarter. Messari reported that the total value locked (TVL) in Cardano's DeFi sector increased by 28.7% in Q3, reaching $423.5 million, its highest point since early 2022. Furthermore, NFT trading volume on the network saw a substantial surge of 561.7% during the quarter, amounting to $262,450.
The report also highlighted a significant partnership for Midnight, Cardano's privacy-focused sidechain, with Google Cloud. This collaboration aims to integrate Midnight's privacy layer with enterprise-grade infrastructure and leverage Mandiant's threat analysis tools. In terms of governance, Cardano has successfully transitioned from an interim Constitutional Committee to a fully elected body, further solidifying its commitment to community-led decision-making processes.