Cardano Whales Scoop 160 Million ADA After Price Dip; What Do They Know?
Cardano (ADA) has faced a notable price pullback after reaching a local high of $1.33 earlier this month following a stellar November, where ADA surged by an impressive 270%.
The recent price decline is primarily attributed to profit-taking by investors after the rally. However, despite this dip, the blockchain continues to attract significant interest from major holders.
Popular crypto analyst Ali Martinez highlighted this trend in a Wednesday tweet, revealing that the dip has triggered a wave of accumulation among Cardano whales.
Cardano whales took profits on the way up from $1.15 to $1.33, but after $ADA dropped to $0.91, they started buying again. In fact, theyve bought 160 million ADA since the dip, Martinez wrote.
Further data reveals that wallets holding between 10 million and 100 million ADA, often called sharks, have seen a significant increase in activity during this accumulation phase. While frequently overlooked, this investor tier wields substantial influence in the market. Their cumulative buying or selling activity can notably impact price trends, often shaping broader market dynamics and signaling potential shifts in momentum.
The continued accumulation of ADA reflects growing confidence in the Cardano ecosystem, which has been gaining momentum across multiple areas. Data from crypto analysis platform Taptools reveals that, over the past 30 days, the ecosystem has seen a substantial inflow of more than 3.78 million ADA into the market. During this period, Cardano has consistently maintained over 50,000 active daily traders on its decentralized exchanges (DEXs), underscoring its rising liquidity and expanding user base.
Additionally, the surge in liquidity and active addresses signals a strong influx of new investors, further strengthening Cardanos market position. Furthermore, as per data from DefiLlama, Cardanos Total Value Locked (TVL) has seen remarkable growth this year, reaching approximately $708 million earlier this month and surpassing previous all-time highs.
Cardano has also been steadily gaining prominence in the cryptocurrency space, driven by its advancements in sectors such as DeFi, smart contracts, and scaling solutions like Hydra, attracting significant interest from larger institutional investors.
On the price front, the accumulation of ADA by whales during market dips is a positive signal for retail investors. It suggests that the perceived floor price is around $0.90, which has recently been breached as a key support level, indicating the potential for a price rebound.
ADA was trading at $0.85 at press time, reflecting a 0.14% drop in the past 24 hours.
Read more: https://zycrypto.com/cardano-whales-scoop-160-million-ada-after-price-dip-what-do-they-know/
Text source: ZyCrypto
