Cardano (ADA) has seen some tragic price action over the past few months, which has dragged its price down to a two-year low. It still continues to maintain this downtrend and almost does not move, like the rest of the crypto market, but some developments among large ADA investors can see some bullish momentum for digital assets.
Pope Cardano Begins Accumulation In The New Year
At the end of 2022 when the momentum in the crypt market decreased, there was some selling from the big ADA investors. This is not out of the ordinary because holidays have historically triggered selling and profit-taking.
Pope Cardano has sold more than 569 million ADA during this period. The result was more selling pressure on the digital asset that dragged its price below $0.25, the lowest price point since early 2021. Holy note, this saw the total ownership of investors holding between 1 million and 100 million ADA in the balance decreased drastically as 2022 close.
ADA whales increase holdings | Source: Santiment
However, this class of investors seems to have entered the new year with renewed enthusiasm as they have started buying back their discarded tokens. The report shows that in the first five days of 2023, these big investors have added more than 217 million ADA to their stash. This brings the current percentage of supply on hold to a level of 57.22%, not the highest, but certainly an encouraging figure.
ADA Enjoys Loot Accumulation
The price of ADA has reacted to the number of coins purchased by this Cardano whale. Over the last 24 hours, the cryptocurrency has jumped back into the green, and the price has moved above $0.27 once again.
A continuation of the accumulation trend may lead to a bigger break out for digital assets, especially now that investor sentiment has improved. If that happens, a 10% increase pushing the ADA price above $0.3 would be easy to achieve.
ADA price trading at $0.26 | Source: ADAUSD on TradingView.com
Perhaps more important is the fact that the bulls have added support at the $0.26 level. A successful move from a resistance point to a support point also shows the bull’s determination to continue rising.
However, there is still the threat of bears dragging down the price of digital assets, especially with trading volumes not growing as expected. Another drop below $0.25 would likely put ADA prices at pre-2021 levels.