The cryptocurrency market has been volatile in recent days, with Cardano's price experiencing a sharp drop due to tensions in the Strait of Hormuz. According to Santiment data, the number of wallets with at least 10 million $ADA tokens has increased to 424, the highest point in four months.
This increase in whales' wallets suggests that high-net-worth investors have high conviction in Cardano's potential for growth. Historically, when smart money accumulates and retail capitulates, it creates a bullish divergence that often precedes a market rebound.
However, the current market situation is neutral to bearish, with Cardano's price navigating through a narrow consolidation range between $0.3 and $0.22. A deeper analysis of the technical chart shows a significant volume spike during the recovery phase within this lateral trend.