Cardano’s (ADA) price action has been quite severe in recent months. This has caused it to drop towards its two-year lowest. The cryptocurrency market is still in a downtrend. It is not moving at all, and it continues to do so. However, large ADA investors may see some positive developments that could lead to some bullish momentum.
Cardano Whales Accumulate in the New Year
ADA investors had begun to sell large amounts of crypto market assets towards the end 2022, when the momentum was waning. This was not uncommon as holidays are known for triggering profit-taking and selling.
Cardano whales have sold more than 569 millions ADA over this time. This resulted in more selling pressure for the digital asset, which drove its price below $0.25, its lowest point since early 2021. As Santiment This was due to the fact that investors who held between 1 million and 100,000,000 ADA on their balances saw their total holdings plummet as 2022 drew near.
Source: Santiment| Source: Santiment
These investors seem to be more energetic than ever as they have begun buying back the tokens that were discarded. This report shows that these large investors have added more than 217,000,000 ADA to their holdings in just five days. 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 Rejoices in the Benefits of Accumulation
The number of coins these Cardano whales buy is already affecting the price of ADA. The cryptocurrency has surged back into green in the last 24 hours, and its price is now above $0.27.
An extension of the accumulation trend could result in a bigger break out for the digital assets, especially since investor sentiment is improving. If this happens, a 10% upside that pushes ADA’s price above $0.3 will be easily achieved.
ADA price trading at $0.26| Source: ADAUSD on TradingView.com
More important, the bulls have already started to gain support at the $0.26 mark. Bulls’ determination to maintain the uptrend is evident in their successful transition from a resistance level to a support level.
There is still the possibility of bears driving down the price of the digital asset. This is especially true if trading volume has not grown as expected. Another fall below $0.25 will likely end up putting ADA’s price at pre-2021 levels.