Cardano (ADA) is a major crypto, but has continued to decline even when most altcoins have seen slight recoveries.
The altcoin Season Index has climbed above 40 over the past two weeks, but ADA price has continued to squeeze lower.
However, the whales are not letting this reduction go unnoticed. They have returned to record levels in terms of accumulation, but will this save the altcoin’s low prices?
Cardano whale holdings reach record highs in years
According to Santiment data, wallets containing at least 1 million ADA, called whales, contained 25 billion tokens. This is the highest level since late 2017, when whales held around 22.85 billion tokens.
At press time, these whales controlled more than 67% of the ADA supply. This is another high since July 2020. In 2020, Cardano rose from $0.23, the current price, to around $3 during the 2021 altcoin season.
The data suggests that large players, such as institutions and whales, are confident in their ability to win, indicating a long-term bullish outlook.
ADA price in compression
On the charts, the altcoin has been consolidating in what appears to be a triangular pattern. Cardano (ADA) price continued to compress as part of the trend, confirming that whales are accumulating.
Usually, such technical patterns often indicate positioning, whether for large investors or retailers.
The MACD still shows that sellers are in control and gaining strength, which could take ADA to this year’s low of $0.22. The Cumulative Volume Delta (CVD) further indicates the selling activity after cashing out 29.62 million ADA.
Historical price data showed that every time Cardano reached the $0.220 to $0.236 mark, buyers stepped in. However, for the trend to change, the technical outlook must align with the influx of whale capital.
With whale positioning, ADA price could reverse, but the signal is for those patient enough to hold it.
In the short term, the altcoin remains bearish until it turns oblique resistance around $0.28 into support.
Liquidity increases but activity remains low
Notably, liquidity was increasing with Cardano’s stable market cap reaching $52.15 million. This is a growth of 12% in just one week.
However, other key indicators were down. The number of transactions and active addresses were 24.74K and 16.48K, respectively.
These numbers were relatively low next to the total value locked (TVL), which decreased by 2.25% to approximately $148.75 million.
Therefore, whale activity and liquidity growth were bullish, but the technical outlook and network activity were bearish. This contrast explains why ADA price developments have been stagnating around the same levels for months.
Final Summary
- Cardano whales have reached two record highs: the number of tokens held and the percentage of supply controlled, but network activity is declining.
- Cardano price has been stagnant at the same levels for months, indicating that accumulation is underway.
