The current pattern of whale ADA accumulation followed significant selloffs over the previous two months.
Whale addresses for Cardano (ADA) (holding 1 million to 100 million ADA) have started a major rally of accumulation, adding 217 million or more ADA tokens to their hoards since January 1.
Following the market-wide decline and the severe economic headwinds, these whale addresses launched a distribution campaign in November and December last year.
They sold off up to 568.4M ADA tokens.
According to a chart released by Santiment today, the latest shift in sentiment began at the beginning of the year.
Data From the Santiment Chart
These addresses currently possess 57.22% of the ADA’s circulating supply, or 19.7 billion tokens, according to data from the Santiment graphic.
According to data from Messari, the number of active addresses on the Cardano network has surged to 58,268 due to the higher accumulation trend.
A modest increase in trade volume has also been observed recently on Binance; on January 4, it reached a 3-week high of 148.81M ADA, indicating rekindled investor interest.
Notably, Input Output Global recently revealed some of Cardano’s accomplishments in 2022, which may be part of the reason for the interest’s resurgence.
These accomplishments include more than 1,100 Cardano-based projects, 3.7 million Cardano chain wallets, 4.8 thousand smart contracts, and 56 million transactions.
ADA So Far in 2023
Since January 1, ADA has increased by 12.2% and has won four of the last five sessions.
After suffering a negligible loss of 0.35 percent on January 3, ADA embarked on one of its greatest intraday rallies, ending the day on January 4 with a 5.89% gain.
Since a 16.13% increase on November 10, 2022, this was the greatest intraday gain.
ADA is unaffected by the recent market-wide correction that has resulted in a string of dips.
ADA is the only asset of the top 20 assets that have increased in value over the past 24 hours, up 2%. In the last week, the asset has increased in value by 11% compared to BTC.
The steady uptrend has also raised ADA’s market cap, which is now $9.44B. As a result, the asset has reclaimed the eighth spot in the market cap rankings by surpassing dogecoin (DOGE).
Despite this, this position is still precarious because DOGE currently has a $9.39 billion market cap.
A few cents away from the second resistance level at $0.2760 and just over its first significant resistance at $0.2720, ADA is trading at $0.2734 at the time of publication.
The third resistance level for ADA is currently around $0.2840.
The asset must overcome two more resistance levels to regain the $0.30 region—which analyst Duo Nine believes is the pivot point needed for a bullish market reversal.