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Saturday, January 28, 2023

Cardano Whales Start 2023 With Accumulation Trend That Could Be Bullish For ADA

Cardano (ADA) has seen some pretty tragic price action in the last couple of months, which has dragged its price down toward two-year lows. It still continues to maintain this downtrend and is barely moving, just like the rest of the crypto market, but some developments among large ADA investors could see some bullish momentum for the digital asset.

Cardano Whales Begin Accumulating In New Year

Toward the end of 2022 when momentum in the crypt market was dropping, there had been some selling from large ADA investors. This was not out of the ordinary as the holidays have historically triggered selling and profit-taking. 

Cardano whales had sold over 569 million ADA during this time. The result was more selling pressure on the digital asset that dragged its price down below $0.25, making its lowest price point since early 2021. As Santiment notes, this saw the total holdings of investors holding between 1 million and 100 million ADA on their balances drop drastically just as 2022 drew to a close.

Cardano (ADA)

ADA whales increase holdings | Source: Santiment

However, this investor class seems to have entered the new year with renewed vigor as they have already begun buying back the tokens they had dumped. The report shows that in the first five days of 2023, these large investors have already added more than 217 million ADA to their stash. This brought the percentage of supply that they now hold back up to the 57.22% level, not the highest it’s ever been, but certainly an encouraging figure.

ADA Enjoys The Spoils Of Accumulation

The price of ADA is already reacting to the number of coins that these Cardano whales are buying. Over the last 24 hours, the cryptocurrency has jumped back into the green, and its price has already moved above $0.27 once more.

A continuation of the accumulation trend could possibly lead to a much larger break out for the digital asset, especially now that investor sentiment is doing much better. If this happens, a 10% upside that pushes ADA’s price above $0.3 will be easily achieved.

Cardano (ADA) price chart from TradingView.com

ADA price trading at $0.26 | Source: ADAUSD on TradingView.com

Perhaps more important is the fact that the bulls are already mounting support at the $0.26 level. The successful switch from a resistance point to a support point also shows the determination of the bulls to continue the uptrend.

However, there is still the threat of bears dragging down the price of the digital asset, especially with trading volume not growing as expected. Another fall below $0.25 will likely end up putting ADA’s price at pre-2021 levels.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Forbes, chart from TradingView.com

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