220,000,000 ADA in 1 Week: Do Cardano Whales Know Something We Don’t?

Cardano’s native cryptocurrency has plunged by 13% over the past month, coinciding with the bear market reigning across the entire crypto sector.

However, the recent whale behavior suggests that a rebound could be on the way.

Something We Don’t Know?

ADA currently trades at around $0.24 (per CoinGecko), while its market capitalization has fallen below $9 billion. Thus, the asset (once part of the elite top 10 club) is now the 15th-largest cryptocurrency.

Nonetheless, the large investors appear to view the price levels as a great buying opportunity. The popular analyst Ali Martinez revealed that they have accumulated 220 million tokens over the last week alone. This stash amounts to roughly $53 million (at current rates), while whales now hold almost 13.84 billion units, or 37% of the asset’s circulating supply.

The buying spree from these market participants may encourage smaller players to hop on the bandwagon and distribute fresh capital. After all, whales are known as experienced investors who may have inside information about upcoming news or developments that could impact the price of the cryptocurrency.

Earlier this month, Martinez touched upon ADA again, setting $0.245 as a “key support level.” Prior to that, the asset’s valuation hovered around $0.25, and the analyst reminded that on previous occasions this had led to explosions of 85% and 200%. X user ALTS GEMS Alets is also optimistic. They believe the bottom is in, envisioning a potential pump above $0.60 in the following months.

ADA’s Relative Strength Index (RSI) supports the bullish outlook. The ratio of the technical analysis tool has dropped below 30 on a weekly scale, suggesting the asset is oversold and ready for a possible revival. On the other hand, readings above 70 are considered bearish territory.

The list of factors hinting at a short-term price recovery also includes ADA’s recent exchange netflow. Over the past several days, outflows have exceeded inflows, signaling that investors have been abandoning centralized platforms and shifting toward self-custody. This, in turn, reduces the immediate selling pressure.

ADA Going to Zero?

Despite the aforementioned optimism among analysts and the bullish elements, some market observers remain skeptical and even hostile toward the cryptocurrency.

The X user with moniker gnarleyquinn, for instance, argued that Cardano’s chain is “going to zero” in the next few years, noting the evident decline in ADA’s dominance. Recall that the figure stood at around 4.5% in 2021, whereas currently it is a mere 0.3%.

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