The Whales Continue To Swim In The Ocean Of ADA Amid Dip Buying Opportunity

According to recent reports, a number of whales have been purchasing massive amounts of Cardano (ADA) in the past week, despite the bearish price trend of the cryptocurrency.

Cardano - Ada

2021 was a big year for Cardano. In September, the popular blockchain platform launched its groundbreaking Alonzo hardfork, which brought many exciting new features to the platform, including the long-awaited smart contract functionality that was implemented through the integration of Plutus scripts onto the blockchain. But even though Alonzo represented a huge milestone for the project, things have not been going very well for Cardano’s native token ADA.

The altcoin is trading at the time of writing at $0.8359, and is down more than 72% from its all-time high of $3.09 in Sept. 2021 which coincides with the Alonzo upgrade.

While many had expected an increase in value following the protocols change, ADA remains stuck in a bearish trading pattern. In fact, year-to-date and year-over-year the $37 billion market cap cryptocurrency is down 37% and 34%, respectively.

There are a few possible explanations for this. First, it could be that the market is still adjusting to the new functionality, and that investors are waiting for more concrete evidence of success before buying in. Alternatively, it could be that the upgrade that enabled the network to enter the dApps space- simply wasn’t as groundbreaking as some had hoped, and that investors are skeptical of ADA’s ability to compete with other smart contract platforms like Ethereum (ETH).

Based on data from leading cryptocurrency data provider IntoTheBlock, ADA’s recent 72% price dip has had a major impact on investors. According to the analysis, nearly 88% of ADA holders are currently experiencing losses, while only 9% are in profit. This suggests that the majority of Cardano investors have been hit particularly hard by the cryptoasset’s downturn.

Despite the bearish price action, there is still a lot of potential associated with Cardano. The cryptocurrency has a strong development team, a large community, and a robust technology. There are certainly engineering challenges that the blockchain has to address. But with time, solutions and better methods will eventually be developed.

What’s more, many investors, especially whales, are using the ‘buy the dip’ strategy to accumulate ADA. In fact, Cardano’s top whales currently own nearly 47% of the ADA supply. In the cryptocurrency world, whales are those that hold a large amount of a given digital asset. And according to another set of data from the IntoTheBlock, Cardano whales have purchased over $18 billion worth of ADA in the last seven days alone, with none of the transactions less than $100,000.

Moreover, since early last year, the number of new addresses created within the Cardano blockchain has been growing at an unprecedented rate. In the past month alone, the number of new addresses jumped by nearly 100,000. These factors could help the cryptocurrency rise in value over time, even if there is a short-term price decline.

As an investor, it is important to look at the long-term potential of a cryptocurrency rather than its current price. While the bearish price action of ADA may be disheartening, there is still a lot of potential associated with the cryptocurrency.

As such, investors should not lose hope in Cardano yet, but rather, keep an eye on the developments of the cryptocurrency. Such a development is Cardano’s upcoming Vasil hardfork which is expected to massively improve the performance of the platform given it will enhance the range of DEXs, DeFi, as well as smart contracts.

Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice

h/t TCB

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