Cardano (ADA) has recently shown intriguing on-chain activity that could signal upcoming price movements. Santiment reports that smart money wallets have been steadily accumulating ADA amid suppressed prices. Over the past two months, wallets holding between 100,000 and 100 million ADA added 454.7 million ADA, about $161.42 million at current valuations. This accumulation by large holders, often called whales, contrasts with the behavior of smaller investors.

In just the last three weeks, wallets with 100 or fewer ADA coins have offloaded 22,000 ADA, amounting to about $7,810 in losses. This divergence highlights a smart money versus retail dynamic, with institutional or experienced traders positioning for potential upside while smaller players exit amid uncertainty. Santiment’s update from January 26, 2026 suggests growing confidence in Cardano’s long-term prospects despite short-term price suppression. Traders should note that whale activity often precedes bullish reversals, given these entities’ access to superior information and resources.

For instance, historical patterns show accumulation phases in 2021 that led to significant rallies. In current charts, ADA appears to be in a range-bound pattern with support around $0.30 to $0.35 and resistance near $0.40. Trading volumes have been moderate, but a rise in on-chain transfers could validate this narrative and offer entry points for swing traders. Key indicators like the Relative Strength Index (RSI) might show oversold conditions, reinforcing a rebound if whale buying continues.

For cryptocurrency traders, the Santiment insight provides actionable opportunities. Consider a long position on ADA if whale accumulation persists, targeting a move above resistance with stop-losses below recent lows to manage risk. On-chain metrics such as mean dollar invested age or network realized profit or loss could further confirm whether smart money is driving sentiment. Overall, the accumulation trend underscores Cardano’s resilience in a volatile market.

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