Despite showing strong bullish momentum in the last few weeks, it seems large wallets are not buying Cardano (ADA) as they used to. In fact, we have seen the exact opposite. But what does this mean? Is ADA risking a sell-off? Not exactly. Nonetheless, here are some important facts:
Whale holdings for ADA are now at an all-time low
But an influx of institutional money in 2022 could help balance the scales
ADA remains bullish and is up nearly 35% from its lowest price in 2022.
Data Source: Tradingview
Cardano (ADA) – Does loss of whale accumulation matter?
Well, at the end of the day, large wallets will have a massive impact on the price action of any coin. In an ideal situation, you would want to have whales holding an asset for longer. That is always a good sign.
But despite this, it doesn’t seem like ADA has largely been affected by a drop in whale holdings in fact, in the midst of all this, the coin has surged to its best possible price in 2022 and remains well above its yearly lows as well.
Besides, although whale holdings for ADA are at an all-time low, large wallets still hold a lot of Cardano. At least 83% of all ADA coins in circulation are held by large wallets. So, there is still a long way to go before a drop in whale accumulation starts to have a real impact.
What is Cardano’s long-term outlook?
Cardano still maintains a very positive long-term outlook. Conservative estimates expect ADA to close out 2022 at $4, which will be about 4 times its current price.
In that case, even if whales are dumping some of their ADA holdings, this does not change the fact that the coin could still deliver immense value for investors in 2022.