With the persistent downward performance of cardano price In recent weeks, its short-term prospects are proving uncertain and very volatile. However, investor action tells a different story as sentiment quietly recovers among key ADA holders, which could impact and change the course of the altcoin in the near future.
ADA investors act behind the scenes
Cardano (ADA) retested the $0.25 price level once again after the broader cryptocurrency market decline, reflecting a cautious and weakening environment. However, beneath the surface, investor behavior is starting to tell a different story.
Despite this negative behavior, which has persisted for months, investor activity suggests a growing bullish interest in altcoin as the accumulation steadily increases. On-chain trends and wallet activity suggest that long-term traders remain resilient, a segment of the market that is currently attracting attention in the space.
This divergence between price behavior and investment activity reinforces the idea of a growing conviction and dependence on cryptocurrency and its future prospects. At this point, ADA may face an extension of its bearish phase or trigger a rebound as investors continue to increase their positions.
Santiment dataa leading on-chain data analytics and market intelligence platform, revealed that the growing buildup is focused on key whales and sharks. After examining the amount of Cardano held by these key investors, the platform highlighted that they have been quietly purchasing their holdings for the past 6 months.
During the period, whales and sharks, wallet addresses containing between 100,000 and 100 million ADA, have cumulatively acquired over 819.4 million ADA, valued at over $213.9 million despite continued market pressure.
Even with the price of Cardano falling by more than 71%, from $0.90 to $0.26, these investors remain unfazed by the pullback and have accumulated around 1.6% of the total supply in the market. When investors buy during a period of increased volatility, it often suggests they could be setting themselves up for a long-term recovery beneath the surface.
A change to Cardano’s monthly structure
After the sharp drop in price, it is speculated that Cardano You may have reversed your monthly structure. Bitcoinsensus, a market analyst at social media platform offered information on the current structure of ADA and its possible next direction.
Looking at the monthly chart, ADA is going through a multi-year correction range after the previous expansion cycle. As seen in the past, this correction phase preceded a massive pump phase, which Bitcoinsensus believes could repeat this cycle. There is a recent reaction from the lower limit of the range.
Chart shows first signs of higher term momentum trying to build. Bitcoinsensus noted that historically significant expansions followed prolonged compression stages; The structure is currently located in a crucial transition zone.
Featured image from Freepik, chart from Tradingview.com
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