Cardano (ADA) bulls have done everything they can to make the ADA price outperform. However, the global market risks were simply too great to stomach, and bulls were met with a strong rejection against $1.14.
Cardano does not appear to be in for an uptick anytime soon, given the death cross pattern, and losses are expected to widen more next week.
As long as current headwinds persist and rock financial markets to their core, the ADA price could go into next week by testing and slipping below $1.00 for the duration of that week.
Anticipate bulls to remain on the sidelines until market conditions improve and risk-on becomes evident, but until then, expect the ADA price to drop to $0.71, the low from mid-February.
Whales stock up on ADA
When it comes to ADA, a research from analysis firm Santiment shows a broad accumulation pattern among whales. Big investors increased their buying activity when the value of the digital asset plummeted.
One would expect that with such a significant drop in value as the Bitcoin has experienced, whales with massive holdings would dump their assets to avoid more losses.
These whales, on the other hand, are using this as a purchasing opportunity. The top ADA whales have all quadrupled their holdings in the last 10 days, according to the Sentiment report.
Cardano’s native coin, ADA, had lost around 34% of its value throughout this time span. Since then, whale wallets holding 10,000 to 1 million ADA have more than twice their previous holdings.
In a 10-day span, these whales together purchased nearly $53 million worth of ADA. The average increase in their shares is roughly 113 percent, thereby more than doubling the amount of ADA they control.
The Cardano whales’ purchases have benefited the asset, but it’s too early to know how long the stop-gap will last. If whales continue to accumulate, and smaller investors follow in their footsteps, a reversal could be on the horizon.
With market sentiment firmly in the pessimistic camp, investors may be leery of betting on the smart contracts network.