Cardano Bullish Despite Declining Altcoin Prices as More Small Holders Sell ADA to Whales at a Loss
A recent report from on-chain analytics firm Santiment suggests Cardano is showing signs of being bullish, even as broader altcoin prices fall. The analysis indicates small ADA holders have been selling at a loss to large “whales”, consolidating supply.
On Wednesday, Santiment tweeted that Cardano’s market value had risen 7% day-over-day, contrasting with drops across most other major cryptocurrencies. Intriguingly, they note that the total number of Cardano addresses has been declining.
Source: Santiment – Start using it today
What you'll learn 👉
Supply Consolidation to Whales
As Santiment states: “Typically, declining wallets is a sign of small holders capitulating & selling to whales at a loss.” This supply consolidation from smaller holders to larger ones can signify a bottoming out during bearish markets.
Ongoing Positive Momentum
The initial 7% gain highlighted by Santiment has extended even further, as it made 5% gains today, making the total surge a little above 18% for the past 7 days.
This continued positive momentum aligns with the indicators of smaller investors selling at losses and distribution shifting more heavily towards sizable “whale” holders during the recent crypto downturn.
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In conclusion, Cardano’s rallying prices and consolidation of supply to larger holders points to a bullish outlook. Despite prevailing negative sentiment and falling valuations for altcoins in general, on-chain data suggests strong fundamentals for Cardano. An end to capitulation by small holders could signify that a bottom is in place, with recovering prices enticing prominent whales to accumulate more ADA holdings.
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