Leading smart contract network Cardano recorded an increase in the percentage of ADA token supply held by large wallet investors. Shark and whale addresses are holding about 10,000 and 100,000 ADA. At the time of writing this article, Cardano was trading at $0.2608. ADA’s price outlook is bearish.
The Cardano network has grown significantly, particularly the percentage of its native token held by large wallet investors. Key Cardano sharks, as per Santiment, have been accumulating steadily since June 2022. However, there has been a dip in large wallet addresses buying the tokens since the collapse of FTX in early November. Data highlighted that wallet addresses that hold 10,000 to 100,000 ADA tokens scooped up $83 million worth of the altcoins since November 7, 2022.
This is considered as a bullish sign as whale wallet accumulation is typically followed by mass profit-taking by investors. Furthermore, ADA price is in a downtrend and is likely to dive more. Analysts believe this is an ideal time for traders to open crypto shorts. The relative strength index surged sharply against a small increase in Cardano price. This suggests that the altcoin is overbought. If ADA manages to go above the 50-day exponential moving average, the bearish thesis would be invalidated.
