“Cardano Whales Acquire $161M While Retail Investors Leave”
Over the previous two months, large holders with Cardano (ADA) balances ranging between 100,000 and 100 million tokens have been actively accumulating. Despite a roughly 19% price decrease in the cryptocurrency, these whales have managed to amass 454.7 million ADA, equivalent to $161.42 million.
In contrast, retail traders have been selling off their holdings. Smaller holders with 100 ADA or less have sold approximately 22,000 tokens valued at nearly $7,810 over the last three weeks. This pattern of whale accumulation and retail selling has historically set the stage for a potential market rebound once conditions stabilize.
Santiment, a leading analytics platform in the crypto space, noted the significance of this trend. As of the latest trading data, ADA was priced at $0.3534, showcasing a modest 2% increase over the past 24 hours.
While market dynamics may seem conflicting, there are positive signs to consider amidst the price weakness. The fundamental metrics for ADA remain robust, with the number of ADA holders increasing from 3.17 million in November to 3.228 million recently. Furthermore, the total value locked in DeFi protocols associated with ADA has reached $161.87 million.
Technical analysts have also identified potential indicators of an impending shift in ADA’s price trajectory. One analyst emphasized that ADA is currently consolidating within a historically significant demand zone and outlined price targets of $0.6386, $0.9358, and $1.3285 if the current support levels hold.
However, another analyst highlighted the presence of significant sell walls that could constrain any upward movement in ADA’s price. Despite this, the overarching sentiment remains cautiously optimistic as long as ADA stays above crucial support levels. To observe a meaningful recovery, ADA will require sustained buying pressure to challenge the current bearish momentum reflected in its chart patterns.
