Cardano Whales Holding Most ADA in 2 Years Despite 59% Drop from All-time High

Cardano Whales Holding Most ADA in 2 Years.

Due to market corrections, most cryptocurrencies have dropped significantly from their all-time high prices recorded in Q4 2021. Cardano (ADA) is one such asset. After losing 59% of its all-time high price of $3.10, it now struggles to stay above $1, worsened by the major market correction seen yesterday.

Surprisingly, Cardano whales (those with 10 million or more ADA) hold the highest percentage of the cryptocurrency’s supply in two years. Specifically, they now hold 46.6% of the supply, although a good number of the whale addresses belong to exchanges. 

? #Cardano is down -59% since its $3.10 #AllTimeHigh. However, the asset's top whales (holding 10M+ $ADA) have returned to their largest percentage of supply held in two years, at 46.6%. Note that a large portion of these addresses are owned by exchanges. https://t.co/N8IVKH7hPx pic.twitter.com/9kwd0bMJHn

— Santiment (@santimentfeed) April 11, 2022

Whale holdings, a sign of optimism

The crypto market has experienced a slow price correction since January 2022. While this is usually considered to be a bad sign, whales holding onto more of the ADA than they ever did in two years show they expect the trend to change eventually. It also depicts that large investors trust Cardano. The optimism is hardly surprising as Cardano has been doing a lot of work to make the network more useful.

The project’s founder, Charles Hoskinson, has often spoken about these upgrades, some already in place. The team recently announced it had enabled smart contracts and dapps on the network. Just last month, it also announced the launch of its NFT marketplace for the network’s users to buy, sell and trade NFTs as the ecosystem continues to grow.

Cardano announced even more recently that it would be launching a decentralized autonomous organization (DAO) to champion the emergence of new ideas. The DAO will also contribute to funding ideas for the network to make it compete with other top projects. All of these are expected to make the network support a growing number of users and increase the utility of ADA, the native token.

ADA may drop to $0.91 or lower

Cardano had maintained a $1.2 price for some time until the recent market correction that made it lose the psychological $1 level. The asset seems to be under serious selling pressure even though whales are holding a significant portion of its supply.

The current price is $0.9454 but may drop to the key $0.91 support if this trend continues. Analysts expect it to even go lower until it hits the support at $0.78.if the momentum does not change soon.  Key technical indicators such as trading volume, RSI, and MACD indicate that ADA is in a bearish trend, at least in the short term and there is no hope of recovery in sight yet.