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

▲ 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 been continuously accumulating ADA over recent 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 consistently 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 instead 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 smart contract network.

Expectations for regulation were also cited as a factor supporting investor sentiment. The media 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 paying attention to the possibility of increased institutional capital inflow if regulatory uncertainty eases.

Technically, there was also an analysis suggesting that ADA shows potential for a short-term rebound. Based on the ADA/USD weekly chart, Cardano recently successfully rebounded near $0.24, which acted 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 by whale investors continues in the future, ADA has the potential to rebound towards the upper resistance line of the long-term descending triangle. However, it warned that if the pace of whale accumulation slows down, the current support trend line could collapse, and further sharp declines cannot be ruled out.

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