Santiment just released figures showing a sharp increase in cardano accumulation and seller weariness.
According to indicators provided by the cryptocurrency behavior analytics platform Santiment, Cardano (ADA) may be trading in undervalued markets.
According to the Santiment statistics, there has been a significant drop in capitulation and an increase in shark and whale buildup.
SanR, a well-known member of the Santiment community, recently brought attention to the issue and provided three metrics to support his claims.
Notably, an increasing accumulation tendency has been seen among whales (holding 1M to 10M ADA) and shark addresses (containing 100K to 1M ADA).
The Whale and Shark Accumulation
Shortly after FTX’s fall, this accumulating tendency began, leading to a price crash for ADA and the rest of the crypto market.
As a result, at the t time of publication, the whale address balance had reached a 2-month high of 5.55B ADA.
Additionally, sharks have been on a more aggressive accumulation drive since the price drop.
Since November 11, millions of ADA tokens have been amassed by these addresses, totaling 5.91 billion ADA as of publication.
The network last observed this value in early May. This expanding pattern has drawn attention, as shark addresses increased their ADA holdings by $83 million in just seven weeks.
Whale activity and Cardano’s price have diverged due to the abrupt price drop and a sharp spike in accumulation.
This is a bullish sign for the asset, according to SanR, as a price hike is soon to be anticipated.
Cardano Investors Have Begun Holding Their Assets
Furthermore, investors in ADA have started hanging onto their holdings, reflecting the tiredness of sellers, following a significant selloff at the start of the FTX drama.
As the price continues to fall, Santiment’s Network Realized Profit/Loss demonstrates a progressive decline of coins selling at a loss.
The indicator currently registers a value of -1.76M, an improvement above the -6.22M number seen on November 7. This indicates lesser investor willingness to sell.
In conclusion, SanR pointed out a volume gap in Cardano that, according to historical evidence, would probably be filled soon.
Investors might be drawn to buy additional ADA tokens at the current price discount. The increase in demand can strengthen ADA and support a price increase.
At the time of publication, ADA’s price was $0.2511, down 4.52% from the previous day.