Cardano Whale Activity Drives 10% Rally

Cardano (ADA) experienced a notable price surge of nearly 10% over two days, accompanied by a significant increase in large transactions and new futures positions. According to Santiment data from October 3-5, the dollar value of open interest in ADA rose approximately 25% to $304 million, marking the highest daily close since early April. This growth in open interest, both in dollar terms and ADA units, indicates that new positions were opened alongside the rising price.

While short covering may have played a role in the rally, Santiment argues that it does not fully explain the price movement. The funding rate for ADA turned positive after hitting its most negative level in a month on October 2, suggesting some short covering occurred. However, the overall growth in open interest points to new leveraged trades contributing to the rally.

On October 5, the number of ADA transactions exceeding $100,000 spiked to 413, more than double the average for weekdays in September. Interestingly, social media activity only saw a modest increase, indicating that large transactions were driving the price action more than public discussion. This suggests that the rally was influenced by institutional or whale activity rather than broader market sentiment.