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Cardano whales stay true to ADA as retail investors surrender. Here’s why…

2min Read

For many market participants, ADA’s time to shine is not yet here. However, whales’ action show that it could be the right time to buy. Is it?

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  • ADA’s market cap decline did not stop the whales from accumulating.
  • A bull run for the token could occur in early 2024, according to an analyst.

Cardano’s [ADA] price action has not been one to excite holders in recent times. In the last 30 days, ADA dropped by 12.97%. And this was followed by a decline in market cap. This period of underwhelming performance implies that ADA’s circulation was much lower than it was about four months back.


How much are 1,10,100 ADAs worth today?


Taking the big leap of faith

Notwithstanding, data from Santiment showed that the number of wallets holding 100,000 ADA and more reached 25,294 over the last 16 months. 

This increase implied that the cryptocurrency’s large holders, often referred to as “whales” and “sharks,” appeared to be maintaining their confidence in the project’s long-term potential.

However, their retail counterpart didn’t share the same sentiment. At press time, on-chain data showed that the number of addresses holding between 0 to 1,000 tokens either flatlined or decreased. 

An instance like this suggests that the small wallets didn’t exactly have the conviction that ADA would be profitable in the short term.

Like the retail cohort, traders in the derivatives market had the viewpoint that ADA would be bearish, as the long/short ratio showed. The long/short ratio is a metric that represents the ratio of long positions to short positions.

A value above 1 indicates that the collective sentiment of traders is bullish. But when the long/short ratio is below 1, it means that traders have a bearish outlook. And that was the case with ADA.

Cardano [ADA] long/short ratio

Source: Coinglass

Trapped for the future 

For the short term, derivate market participants were not the only ones who believed that ADA would continue consolidating. Ali_charts, a prominent analyst on Twitter also shared the same view.

According to Ali, ADA has only been trapped in the $0.46 to $0.24 for 329 days. And with respect to history, it took about two years for the token to gain over 2,000%. Ali added that, if ADA was to replicate such, then holders would need to wait longer. He also noted that this could be as far as February 2024.

Irrespective of the drawdown and traders’ sentiment, Cardano had some positives to look at. One of these was its development activity. The development activity measures the public GitHub repositories linked to a project. 


Is your portfolio green? Check the Cardano Profit Calculator


Although the project is not new to dominance with this metric, the hike to 98.12 suggests that developers were committed to perfect working conditions for the Cardano ecosystem.

ADA price and Cardano development activity

Source: Santiment

However, in the last seven days, 1.05 billion ADA has circulated. This implies that there has been an increase in the number of ADA used within the period.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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