In recent weeks, the number of Cardano whale wallets holding a large amount of ADA has significantly risen, indicating an accumulation trend among these big players. Although this surge has been sudden, many of these wallets are still in a loss position or “underwater” as regards their investment value.
According to renowned analytical platform Santiment, the overall number of ADA holders has stabilized, indicating a decline in new market entrants. This trend is evident from the recent flattening in the total number of holders, which stands at approximately 4.47 million, unchanged since January, with a brief rise in February.
A significant shift in the distribution of Cardano’s token supply has recently been observed. Renowned analytical platform IntoTheBlock revealed that wallets holding between 100 million and 1 billion ADA tokens have accumulated about 11% more ADA in the past 30 days. Consequently, these whale wallets now collectively hold around 6.71% of the total ADA supply.
Conversely, the largest wallets containing over 1 billion ADA have shown a tapering in accumulation. This suggests that these holders neither buy more tokens nor sell off their current holdings, indicating a cautious stance.
The analysis shows that the 30-day Market Value to Realized Value (MVRV) ratio for Cardano is now in the negative zone. The MVRV fell below zero around the middle of March and has been there ever since, which means that ADA buyers in the past 30 days are holding at a loss. Currently, the 30-day MVRV is at -9. 11% of the property was lost, which meant an average loss of over 9%.
The daily price chart of Cardano shows a small increase, with prices going up from about $0.42 to over $0.48, indicating a 5.55% gain in the past 24 hours. The $0.42 level is expected to act as immediate support for Cardano. However, Cardano’s short-term trend remains downward, as seen from the Relative Strength Index (RSI), which hovers near the neutral line, indicating a weak prevailing trend.
Although Cardano Whale Wallets are growing their holdings, the general feeling of the market is still cautious with stable holder numbers and a bearish short-term perspective. This process shows the multiformity and insecurities of the present ADA market.
