Cardano whales are taking advantage of a recent price dip to increase their holdings of ADA, the ninth-largest cryptocurrency by market cap. After maintaining a position above $1 for 14 straight days, Cardano’s price slipped below this key psychological level. On December 9, ADA fell to $0.9100 following Bitcoin’s plunge below $94,000. However, Cardano quickly rebounded, closing that day at $1.0034. Despite another test of lower prices the following day, ADA’s bullish close triggered an uptrend, pushing it to a peak of $1.1819.
Whales Shift from Profit-Taking to Accumulation
During this bearish spell, Cardano whales resumed buying. Data reveals that large holders of ADA increased their balances significantly after the price dip. Market analyst Ali Martinez highlighted this trend in a tweet, noting that whales who previously sold ADA at $1.33 have shifted back to accumulation.
Whales holding between 10 million and 100 million ADA purchased 160 million ADA after the correction, raising their combined balance from under 12 billion ADA on December 12 to 12.16 billion ADA in under a week. The accumulation coincided with a surge in large transactions on the Cardano network.
Related article: Cardano Surges 8%: Can It Maintain the $1 Support?
Martinez’s earlier report revealed that whales conducted 687 transactions worth over $1 million each, reflecting renewed buying interest. This behavior mirrors past accumulation patterns. In November, whales purchased 130 million ADA during a price correction, and earlier this year, they acquired $110 million worth of ADA in anticipation of a price surge.
Market Sentiment and Technical Analysis
Sentiment around Cardano’s ecosystem has turned bearish. On December 18, investor sentiment dropped to -0.786, reflecting a negative outlook. Technical analysis supports this view, with the MACD indicator signaling a mild bearish trend. The MACD line sits at -0.0111, while the signal line rests at -0.0067.
Related article: Cardano Founder Praises IOHK’s Track Record of Delivering Promises
The relative strength index (RSI) stands at 40.15, indicating a neutral zone that’s neither overbought nor oversold. Analysts suggest that if this trend continues, ADA’s price could dip below $1 again. Despite short-term bearish indicators, analysts maintain a bullish outlook for Cardano’s long-term performance.
Some speculate that ADA’s price could surge to $10 by next year. At present, Cardano trades at $1.019, down 3.14% in the last 24 hours. While short-term fluctuations persist, whales’ accumulation signals confidence in ADA’s future growth potential.
