Cardano Whales, Why Are They Accumulating ADA Even in a Market Crash?

▲ Cardano (ADA)/AI generated image ©

Cardano whale investors have not stopped accumulating despite the price crash, causing their holdings to surge to the highest level since 2020. Market analysis suggests that a 'quiet accumulation' aimed at a long-term rebound has begun.

According to investment media outlet FXStreet on May 14 (local time), Cardano (ADA) whale wallets have consistently accumulated ADA over the past several months despite price declines. Based on Santiment on-chain data, the total holdings of wallets holding more than 1 million ADA have now increased to 25.09 billion ADA. This amounts to approximately $6.52 billion, accounting for about 67.47% of the total ADA supply.

The outlet analyzed that Cardano whales have been steadily buying ADA since late 2023. In particular, although the price of ADA has been stuck in a long-term bearish trend since December 2024, falling by more than 77%, large investors have rather increased their holdings to an all-time high. FXStreet evaluated this trend as a sign that whale investors have strong confidence in the growth potential of the Cardano ecosystem and its smart contract network.

Regulatory expectations were also cited as a factor supporting investor sentiment. The media outlet predicted that if the U.S. cryptocurrency market structure bill, the CLARITY Act, passes before the end of 2026, major cryptocurrency markets, including Cardano, could achieve greater regulatory clarity. The market is also focusing on the possibility of increased institutional capital inflow if regulatory uncertainty is alleviated.

Technically, there was also an analysis suggesting that ADA is hinting at a short-term rebound. Based on the ADA/USD weekly chart, Cardano recently succeeded in rebounding near $0.24, which served as a support level during the 2022 bear market. FXStreet explained that ADA is currently moving within a long-term descending triangle pattern that has continued since the 2021 bull market.

The outlet projected that if the accumulation trend of whale investors continues in the future, ADA could rebound towards the upper resistance line of the long-term descending triangle. However, it also warned that if the pace of whale accumulation slows down, the current support trendline could collapse, and further sharp declines cannot be ruled out.

*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*