Cardano’s native coin, ADA, has surged by 47% over the past seven days, defying this week’s market volatility. 

The double-digit price rally comes as whale accumulation increases and investors extend their holding time, signaling strong confidence in the asset.

ADA Supply Shrinks as Whale Accumulation and Long-Term Holding Surge

According to Santiment’s data, Cardano whales that hold between 10 million and 100 million ADA coins have significantly increased their holdings over the past week. During that period, this whale cohort has acquired 220 million coins, valued above $192 million at current market prices. 

At press time, the group of large investors collectively holds 12.74 billion ADA, marking their highest accumulation in six months.

When whales increase their holdings like this, it drives upward price momentum by reducing the available supply in the market. This trend may also trigger FOMO (fear of missing out) among ADA retail investors, leading to increased buying pressure and further price appreciation. 

Additionally, on-chain data has shown a notable increase in ADA’s average holding time among investors over the past week. This suggests a shift towards long-term conviction rather than short-term trading for quick profits. According to IntoTheBlock, the holding time of all ADA coins transacted over the past seven days has increased by 78%.

The holding time of an asset’s transacted coins tracks the average duration tokens are kept in wallets before being sold or transferred. 

Longer holding periods such as this reduce the selling pressure in the market. It reflects stronger conviction among ADA holders as they choose to keep their coins rather than sell them. 

Can It Push Past $0.94 to a Three-Month High?

On the daily chart, ADA’s rising on-balance volume (OBV) confirms the surge in demand. This is currently at 52.56 billion, climbing 2% since March 1. 

This momentum indicator tracks buying and selling pressure by adding volume on up days and subtracting it on down days. When it rises during a rally, it signals strong buying demand, suggesting the price increase is backed by strong demand and may continue.

If ADA’s price uptick continues, it could break through the resistance at $0.94 and trade at a three-month high of $1.32.

On the other hand, if demand falls, ADA’s price could fall to $0.72.

Layer-1 (L1) coin SUI has defied the broader market downturn, surging 4% in the past 24 hours to become the top-performing cryptocurrency.

The price surge follows news that World Liberty Financial (WLFI), a decentralized finance (DeFi) protocol affiliated with US President Donald Trump, has entered a “strategic reserve deal” with the blockchain network.

SUI’s Uptrend Gains Momentum

According to a March 6 blog post by the Sui Foundation, the developer team behind Layer-1 blockchain Sui has entered into a partnership with WLFI. The collaboration explores product development opportunities by leveraging Sui’s technology and includes integrating Sui-based assets into WLFI’s “Macro Strategy” reserve.

Following the news, SUI’s price jumped by double digits and reached a high of $3.11 on Thursday. This price hike was also fueled by news that Canary Capital filed to establish a trust entity in Delaware for its proposed Canary SUI ETF.

While it has since experienced a slight correction, Sui has continued to experience steady demand over the past 24 hours, increasing the likelihood of a sustained rally in the short term.

SUI’s Balance of Power (BoP) on the daily chart confirms this buying pressure. At press time, this indicator, which compares the strength of the bulls against the bears, is above zero at 0.18.

When an asset’s BoP climbs during a price rally, buying pressure strengthens, with bulls exerting significant control over price action. This suggests that SUI’s current uptrend has strong momentum and could potentially continue if demand remains high.

Furthermore, its rising Chaikin Money Flow (CMF) supports this bullish outlook. At press time, this indicator, which tracks how money flows into and out of an asset, posts a positive value of 0.02.

SUI’s CMF setup indicates ​more capital flows into its spot markets than out. This suggests strong accumulation and is a bullish signal, reinforcing the likelihood of continued price appreciation.

SUI Faces Key Decision Point

SUI trades at $2.79 at press time, exchanging hands slightly below the resistance formed at $3. If demand strengthens, SUI could break above this resistance and flip it into a support floor. 

A successful breach of this level could propel the coin’s price to revisit its all-time high of $5.35, last reached on January 6.

However, if this fails, it will trigger a downturn, which could cause SUI to shed its recent gains and drop to $2.10.

Elon Musk’s AI chatbot, Grok, has unintentionally become the center of a crypto controversy, promoting what could be a scam token.

The development comes amid rising concerns of fraudulent crypto, questioning the integrity of token launchpads such as Solana-based Pump.fun, among others.

Crypto Scam Alert: Did Grok AI Accidentally Pump a Token?

Grok, after being prompted by a user’s leading question, initially suggested “GrokCoin” as the name of a meme coin. It then provided a wallet address for the said GrokCoin in response to a now deleted post. Grok also clarified that GROKCOIN is a meme coin on the Solana blockchain, inspired by xAI’s Grok AI, launched in November 2023.

“GROKCOIN, mentioned in the post, is a memecoin on the Solana blockchain, with the wallet address 3MadWqcN9cSrULn8ikDnan9mF3znoQmBPXtVy6BfSTDB. It’s inspired by xAI’s Grok AI, launched in November 2023,” Grok indicated.

Shortly after, the token’s market capitalization reportedly surged to $12 million, with an astonishing $51.9 million trading volume. Meanwhile, data on GMGN shows the token’s value soared nearly 100,000%. This surge came as unsuspecting investors bought into what is likely an orchestrated scheme.

“Grok casually dropping a meme coin name, and the market instantly throws millions at it, peak crypto behavior. AI narratives + meme coins are a different kind of money printer no doubt about that,” one user quipped.

Despite this, skepticism remains high. It appears that an individual intentionally created the token before prompting Grok to mention the coin and wallet address publicly. This assumption comes as the question leading to Grok’s response was quickly deleted, suggesting a deliberate effort to manipulate the market.

The incident highlights how scammers exploit AI tools to create and promote fraudulent tokens. It raises serious concerns about the growing trend of AI-driven crypto scams and market manipulation.

Recently, China exposed the DeepSeek crypto fraud, in which scammers used AI-generated materials to deceive investors. Another incident happened in Hong Kong, where scammers used deepfake technology to mislead investors into fraudulent schemes.

Following the latest development, similar Grok-themed tokens are flooding the Solana-based platform Pump.fun. This further adds to market manipulation concerns and potential investor losses.

Against this backdrop, experts warn that the trend may soon collapse under the weight of increasing scams. BeInCrypto reported that the meme coin market may be at risk of crashing as fraudulent projects flood the space.

Regulators are taking notice of these deceptive practices. A new bill proposed in New York aims to impose strict penalties on crypto scammers. As BeInCrypto reported, the bill defines civil fines of up to $5 million for fraudulent activities.

Such measures highlight the growing urgency to combat illicit schemes and protect investors from falling victim to AI-driven fraud.