Cardano Whales Keep Buying The Dip

Large Cardano holders have continued to build their $ADA positions since December 2023, even as the token shed a significant portion of its value, according to on-chain data from analytics firm Santiment.

Wallets holding at least 1 million ADA now collectively control 25.09 billion tokens, representing roughly 67.47% of the total existing ADA supply. Cardano has a maximum supply of 45 billion ADA, with a circulating supply of around 36 billion tokens. That means a relatively small cohort of large wallets holds a commanding share of all coins currently in existence.

Accumulation Through the Downturn

The buying has persisted despite steep losses. ADA dropped 71% of its market capitalisation over a nine-month stretch, yet whale wallets kept adding to their positions rather than reducing exposure. Cardano whales accumulated over 454 million ADA despite a sharp price decline, while retail wallets continued selling, creating a divergence that often precedes market reversals.

The Cardano blockchain has seen a significant resurgence in major investor confidence, with the number of whale addresses holding over 10 million ADA rising to a four-month peak, with Santiment recording 424 such wallets.Santiment tracking revealed a steady increase in these substantial wallets over the prior nine weeks, with an approximate 5% growth in the count during that period, effectively reversing a previous trend of stagnation.

What the Data Suggests

Santiment noted that whale accumulation alongside retail capitulation signals a potential recovery after the market stabilises. The pattern mirrors behaviour seen during previous Cardano bear markets. Bear market accumulation between 2022 and 2023 saw whale addresses increase during downturns, indicating accumulation at lower price points.

When sophisticated investors accumulate during retail selling, supply moves from weaker to stronger hands, which typically reduces panic selling pressure and creates more stable price foundations, potentially enabling a rebound.

Whether the current concentration of holdings translates into price recovery remains uncertain. Underlying bullish conviction is evident from persistent whale accumulation and strong developer activity, including the imminent Van Rossem hard fork. However, this is tempered by immediate bearish pressure as the price repeatedly fails to conquer the $0.30 resistance zone, leaving the market in a tense equilibrium waiting for a catalyst.

Sources:
BeInCrypto: Cardano Whale ADA Accumulation
FXStreet: Cardano Falling But Whales Accumulating
CoinMarketCap: Cardano (ADA) Price and Supply Data