Cardano (ADA) has been on a steady downtrend since September of 2021 after hitting its all-time high of $3.1. This has been one of the most brutal downtrends for its investors, the majority of which are now drowning in losses. However, as they say, that one man’s misfortune is another man’s come up, whales have seen this as a perfect opportunity to buy up as much ADA as they can. They have now ramped up their buying and have accumulated about $200 million worth of ADA in the space of a month.
Whales Buy 194 Million ADA
Over the past five weeks, Cardano whales have been busy accumulating the digital asset. These whales who hold between 1 million and 10 million ADA on their wallet balances have been the most active since the digital asset has been falling and trending around $1. It seems this has presented a buying opportunity to these whales who have now purchased 196 million ADA in this five-week period.
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Prior to this though, these same addresses have been on a dumping spree. It has caused their collective holdings to drop during this time and in the middle of March had hit one of the lowest points it has ever been. However, after prices had hit a new month low, the whales had resumed their accumulation trend which has increased their collective balances drastically.
🐳📈 #Cardano whale addresses holding 1M to 10M $ADA are accumulating their bags these past 5 weeks (196M more $ADA) after a 7-month stretch of dumping (-1.7M less $ADA). The 9th largest market cap asset recently hit prices last this low in February, 2021. https://t.co/co8BcqHJAF pic.twitter.com/OXpbu3KSXp
— Santiment (@santimentfeed) May 3, 2022
In total, these whales have purchased about $200 million worth of ADA in a little over a month. This is not a new trend for Cardano whales though. In the first quarter of 2022 alone, it is reported that addresses that held between 1 and 10 million ADA on their balances had bought over 4 billion ADA. This had increased their collective balances to 12.19 before the dump trend that had started in the middle of March.
Cardano Hits Yearly Lows
The current price of Cardano is nothing to write home about but it seems that there is no clear end to this downtrend anytime soon. The digital asset has now managed to hit new yearly lows. ADA had last been at prices this low in February of 2021 and that was when the digital asset was at the beginning stages of its impressive 2021 bull rally.
ADA price hits one year low | Source: ADAUSD on TradingView.com
Even though the network boasts one of the most loyal investors following in the space, its price does not reflect this loyalty, nor does it reflect all of the upgrades that are being made on the network. This coupled with the flatlining transaction volume paints a rather gloomy future for the digital asset.
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Cardano investors are also bearing the brunt of the losses in the crypto market. According to data from IntoTheBlock, only 6% of all ADA holders are currently in profit. A measly 1% of holders are sitting tentatively in neutral territory, while the majority of holders (93%) are completely in the loss.
Featured image from Blaze Trends, chart from TradingView.com