Cardano whales double in 10 days. Will this stop the attack?
Cardano (ADA) is one of the most barely affected cryptocurrencies during the latest market crash. It has lost more than 60% of its all-time high so far, putting the majority of its investors in loss territory. The downward trend is a cause for concern among holders. But it seems that not everyone feels that way, as some, especially whales, have seized this as an opportunity to increase their wealth.
Whales fill ADA
A report from analysis firm Santiment shows a broad accumulation trend among whales when it comes to ADA. As the digital asset’s price crumbled, major investors ramped up their buying activity. You would think that with such a loss of value as that recorded by the cryptocurrency, large corporate whales would dump their bags to avoid further losses.
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Instead, these whales see this as a buying opportunity. The Sentiment report shows that the top ADA whales have all doubled their holdings in the past 10 days. During this period, the price of Cardano’s proprietary token ADA had lost about 34% of its value. Whale portfolios with between 10,000 and 1 million ADA have since at least doubled their previous holdings.
In total, these whales collectively purchased $53 million worth of ADA over a 10-day period. The average addition to their holdings comes in at about 113%, more than doubling the volume of ADA they control.
🐳 #cardano‘s price, like many #altcoins, have plummeted in the past 10 days, falling -34%. Large addresses with a value between 10k and 1M $ADA, hold 113% more in their collective bags since the January 17 decline, amassing $53.6 million in tokens. 📈 https://t.co/9V50jyrBlX pic.twitter.com/tQdwa7ym38
— Santiment (@santimentfeed) January 28, 2022
Cardano holders deep in red
Most Cardano holders remain firmly in the red, as evidenced by data from IntoTheBlock. The digital asset currently has one of the lowest win rates of any of the top cryptocurrencies, with only 9% of holders making a profit. A staggering 84% of all Cardano investors continue to struggle as their holdings are firmly in loss, while only 7% hold out in neutral territory.
ADA trades a $1.02 | Source: ADAUSD on TradingView.com
The cryptocurrency had managed to peak above $3 in an impressive rally last year. Since then, though, it’s been a sad tale of dips and crashes that shaved about $2 off its all-time high. Currently, the digital asset is still struggling in the market.
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The Cardano whale purchases have benefited the assets, but it’s too early to say how long the emergency shutdown will last. If whales continue their accumulation trend and smaller investors follow in the whales’ footsteps, there could very well be a turnaround in the making. However, with market sentiment firmly in bearish territory, investors may be too cautious to bet on the network of smart contracts.
Featured image of Nasdaq, chart from TradingView.com