ADA Whales Betting on Bull Run: Is it Time to Buy?

15. August 2023 Aus Von admin

• Cardano’s [ADA] price action has been underwhelming in recent times, with a 12.97% decline in the last 30 days.
• Despite this, the number of wallets holding 100,000 ADA and more has been increasing over the last 16 months.
• According to an analyst, ADA could potentially experience a bull run in early 2024.

Cardano’s [ADA] Price Performance

Cardano’s [ADA] price action has not been one to excite holders in recent times. In the last 30 days, ADA dropped by 12.97%. And this was followed by a decline in market cap. This period of underwhelming performance implies that ADA’s circulation was much lower than it was about four months back.

Whales Remain Bullish On Cardano

Despite this overall bearishness, data from Santiment showed that the number of wallets holding 100,000 ADA and more reached 25,294 over the last 16 months. This increase implied that the cryptocurrency’s large holders appeared to be maintaining their confidence in the project’s long-term potential.

Retail Investors Lose Confidence

However, their retail counterpart didn’t share the same sentiment. At press time, on-chain data showed that the number of addresses holding between 0 to 1,000 tokens either flatlined or decreased. An instance like this suggests that small wallets didn’t exactly have conviction that ADA would be profitable in the short term.

Derivative Market Outlook

Like retail investors, traders in derivatives market had a bearish outlook towards ADA as well due to its low long/short ratio which stood below 1 at press time (a value above 1 indicates bullishness). This further strengthened bears‘ view on Cardano’s short term performance which is currently trapped within $0.46-$0.24 for 329 days according to an analyst Ali_charts who believes it may take two years for another 2K+ gain like before if it were replicated again .

Conclusion

Overall whales remain confident on Cardano’s long-term potential despite its current bearish trend while retail investors seems less enthusiastic about its short term performance as evident from both derivatives markets and on-chain data . It remains to be seen if early 2024 will bring some fruitful gains for ADA holders or not .