Cardano Investors Split As Market Fatigue Sets In

Cardano shows weakened momentum. Its price remains under pressure after several weeks of decline, and some retail investors are gradually reducing their exposure. However, major holders of the ADA crypto are strengthening their positions while small wallets decrease theirs. This divergence between the activity of large investors and that of retail frequently appears in the final phase of a bearish trend.

Whales Accelerate While Retail Disconnects

Recent figures from Santiment reveal an almost counter-intuitive dynamic on Cardano. On one side, retail wallets liquidate their positions, tired of two months of slide. On the other, big holders or those who never make decisions without conviction are accumulating.

In September, the Cardano (ADA) crypto was rebounding despite record pessimism from investors. The current trend indicates that since November 1, wallets holding between 100,000 and 100 million ADA have increased their reserves by about 26,770 ADA. Nothing spectacular, but steady enough to attract attention. This slow absorption is typical of periods when fear dominates the market.

Meanwhile, small crypto wallets holding less than 100 ADA have seen their balances shrink by about 44,751 ADA in total. Indeed, impatient investors exit at the worst time, while savvy investors enter precisely when weariness peaks.

This divergence often appears at the very end of a bearish trend, at a moment when no one dares to believe in a reversal. And it is usually there that liquidity guardians rewrite the market’s next chapter.

Cardano: A Stagnant Price but a Market Running Out of Steam

The chart does not inspire much confidence in Cardano. The ADA crypto hovers around $0.40, trapped in a descending structure. Buyers do not show up, sellers weaken but remain present.

The crypto RSI index, stuck around 40, perfectly illustrates this situation. The downward pressure is still there, but it no longer has the strength it had in September or October. Even more interesting, ADA has not broken any of its major supports. It slides, yes. But, it does not collapse.

This disconnect between price and on-chain fundamentals deserves to be highlighted. Often, this type of stagnation signals a transition zone. The market catches its breath, positions rebalance, and weak signals become more important than the noise of the chart.

For this crypto, historical reversals occurred when three conditions converged. First, whales accumulate; then retail sells out of fear; and Bitcoin stabilizes, offering a neutral ground for altcoins.

Currently, two conditions are already met. The third depends entirely on the global market : a Bitcoin still shaken by macroeconomic uncertainty and post-FOMC turmoil. As long as BTC oscillates, liquidity decreases and altcoins, including ADA, lack momentum.