Cardano Whales Double Holdings In 10 Days. Will This Stop The Onslaught?
Cardano (ADA) has been one of the most hardly hit cryptocurrencies during the latest market crash. It has so far lost over 60% of its all-time high, putting the majority of its investors right in the loss territory. The downtrend has been a cause for alarm among holders. But it looks like not everyone feels that way as some, mostly whales, have taken this as an opportunity to increase their holdings.
Whales Fill Up On ADA
A report from analysis firm Santiment shows a broad accumulation trend among whales when it comes to ADA. As the price of the digital asset had crumbled, big investors had ramped up their buying activity. One would think that with such value loss as that recorded by the cryptocurrency, whales with large holdings would dump their bags to save from further losses.
Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last
Instead, these whales are taking this as a buying opportunity. The Sentiment report shows that the top ADA whales have all doubled their holdings in the past 10 days. In this time period, the price of Cardano’s native token ADA had lost about 34% of its value. Whale wallets holding between 10,000 and 1 million ADA have at least doubled their previous holdings since then.
In total, these whales have collectively bought over $53 million worth of ADA in a 10-day period. The average addition to their holdings comes out to around 113%, more than doubling the volume of ADA they control.
🐳 #Cardano’s price, like many #altcoins, have plummeted in the past 10 days, dropping -34%. However, large addresses holding between 10k and 1M $ADA, own 113% more in their collective bags since the drop on January 17th, accumulating $53.6M in tokens. 📈 https://t.co/9V50jyrBlX pic.twitter.com/tQdwa7ym38
— Santiment (@santimentfeed) January 28, 2022
Cardano Holders Deep In The Red
Most Cardano holders remain firmly in the red, as represented by data from IntoTheBlock. The digital asset currently features one of the lowest profit rates of all the top cryptocurrencies with only 9% of holders said to be in profit. A whopping 84% of all Cardano investors continue to struggle as their holdings are sitting firmly in loss, while only 7% are holding on in the neutral territory.
ADA trading a $1.02 | Source: ADAUSD on TradingView.com
The cryptocurrency had managed to hit a high above $3 in an impressive rally last year. However, it has been a sad story of dips and crashes since then that has shaved about $2 off of its all-time high value. Currently, the digital asset is still struggling in the market.
Related Reading | Tesla Report Shows Bitcoin Holdings Remain Unchanged At $1.2 Billion
The buys from Cardano whales have worked to the good for the asset but it is too soon to tell how long the stop-gap will hold. If whales continue their accumulation trend, and smaller investors follow in the footsteps of the whales, then a reversal could very well be in the works. However, with market sentiment firmly in the bearish territory, investors may be too wary to gamble on the smart contracts network.
Featured image from Nasdaq, chart from TradingView.com