Cardano ADA climbs to $0.195 as whales buy 240M tokens

The price of Cardano's ADA token has surged to its highest level in a month, driven by significant accumulation from large investors even as smaller retail holders have remained on the sidelines. On Tuesday, August 4, ADA climbed to approximately $0.195, a level not seen since July 4, and has gained nearly 26% over the past week, outperforming a generally weak broader altcoin market.

Analysts attribute the rally primarily to whale activity, with data indicating large holders accumulated more than 240 million ADA over a recent five-day period. This buying pressure absorbed available supply and helped push the price higher. The move coincided with ADA breaking above a long-term descending trendline that had previously capped its price, with analysts noting that holding above the $0.17 level is now crucial for maintaining the bullish structure.

The rally presents a notable divergence, as it has occurred alongside a decline in the total number of active network participants. Data shows Cardano has roughly 7,070 fewer non-empty wallets than it did two months ago, suggesting retail investor confidence has not fully recovered. This indicates the current uptick is being fueled by...