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Cardano (ADA) has been experiencing a noteworthy surge in accumulation despite prevailing bearish sentiment in the market.
Despite a 35% decline in its market cap over the last four months since the yearly peak, trader sentiment toward Cardano remains subdued. However, this hasn’t dissuaded large holders from showing a continued interest in the asset.
Per the data from Santiment, the number of wallets holding 100,000 or more ADA tokens has reached its highest level in 16 months, with a current count of 25,294 such addresses.
🐳 Trader sentiment toward #Cardano continues to be low as its market cap is down 35% since topping 4 months ago. However, the sharks & whales haven't been as deterred as one may think. There are now 25,294 wallets with 100K+ $ADA, the most in 16 months. https://t.co/Q5XKveRh5n pic.twitter.com/D0dcfM6LAy
— Santiment (@santimentfeed) August 14, 2023
This accumulation trend bucks the overall market sentiment, indicating a strong belief in Cardano’s prospects among big players.
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Per data from Santiment, the surge in these high-value ADA addresses commenced in July 2022. This marked a significant turnaround following a drop from February 2021 to June 2022.
Notably, the number of these addresses had dipped to a low of 23,190 on July 23, 2022, before the recent resurgence. Interestingly, this pattern has persisted amid Cardano’s roller-coaster ride.
Despite ADA soaring to an all-time high of $3.1 in September 2021, the number of these high-value wallets continued to decline. This trend endured throughout ADA’s subsequent descent from the peak until July 2022.
This uptick in accumulation by larger players showcases a belief in Cardano’s underlying value and potential for future growth. A similar pattern was recently observed among whale addresses holding between 100,000 ADA and 10 million ADA.
Meanwhile, ADA struggles to hold above the $0.29 price territory amid the uncertainty plaguing the broader crypto market. Cardano faced persistent declines over four days, shedding off 3.71% of its value from August 10 to August 13.
The asset now seeks to recoup these losses, but resistance from the bears has placed a roadblock to this recovery campaign. ADA is trading for $0.2905 at the time of reporting, up 0.38% today.
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