Cardano remained locked in a narrow trading range lately with no volatility in sight. Over the past month, ADA was down by approximately 20%, trading at $0.29 as of now. While this trend has caused increasing frustration among market observers, ADA whales and sharks continued to be resilient.
In fact, this cohort of holders has continued to fill their bags with ADA tokens despite the stagnant price action.
According to Santiment’s latest analysis, Cardano’s trader sentiment hasn’t fared well owing to the 35% decline in the crypto-asset’s market cap.
However, ADA sharks and whales have remained undeterred. The count of addresses on Cardano with over 100k ADA has rebounded to its peak level since April 2022. In a recent update, the blockchain intelligence platform tweeted,
“Trader sentiment toward Cardano continues to be low as its market cap is down 35% since topping 4 months ago. However, the sharks & whales haven’t been as deterred as one may think. There are now 25,294 wallets with 100K+ $ADA, the most in 16 months.”
The accumulation trend typically depicts a bullish momentum in the offing. The similar sentiment was echoed by another prominent analyst, Ali, who drew parallels to a similar period of stagnancy between 2018 and 2020. During that phase, ADA’s price appeared to have oscillated between $0.10 and $0.028 for a total of 665 days.
The accumulation ended with a bull run of over 2,985%.
In the current scenario, the analyst observed that ADA has been trapped in the $0.46 to $0.24 range for 329 days already. If history is to repeat itself, the crypto-asset could potentially break free around February 2024, as per Ali’s estimation.
“The key takeaway? Patience often pays in the crypto market, and those willing to wait will be rewarded.”
Even as ADA failed to perform, the Cardano ecosystem, as a whole, was reported to have grown significantly. This is evident from a recent Messari report that revealed an increase of 8.5% in Cardano’s average transaction in Q2 as compared to the previous quarter, going from $0.117 to $0.126. Moreover, the average daily transactions also grew by nearly 2% QoQ from 67,500 to 68,800.
