Cardano's recent performance continues to lag behind most altcoins. Despite the altcoin seasonal index rising above 40 in the past two weeks, ADA's price has continued to decline, failing to follow the market's significant rebound.
On-chain data shows that large holders are still increasing their holdings. Santiment data shows that addresses holding at least 1 million ADA currently hold a total of approximately 25 billion tokens, the highest level since the end of 2017. These addresses control more than 67% of the supply, also a high level since July 2020.
Whale holdings hit multi-year highs
Looking at the holdings structure, Cardano's concentration of large investors continues to rise. The market typically considers these addresses as important targets for institutional or long-term funds. The continued buying by whales indicates that some funds are still positioning themselves within the current price range.
However, the increase in holdings did not immediately translate into a price rebound. ADA is currently still fluctuating around $0.23, with a pattern similar to parts of 2020: large addresses increased their holdings first, but the price reaction was relatively lagging.
- A whale address holds approximately 25 billion ADA tokens.
- The open interest accounts for more than 67% of the supply.
- Both figures are at multi-year highs.
Prices remain low and consolidating.
From the chart pattern, ADA remains in a consolidation range. As mentioned earlier, its price continues to compress within a triangle pattern, indicating that the market is still awaiting a new directional move. Short-term selling pressure has not yet completely subsided.
Meanwhile, trading-related indicators are also weak. The cumulative trading volume difference shows a net sell of approximately 29.62 million ADA tokens, indicating that some funds are still cashing out and leaving the market. If selling pressure continues, the price may retest the $0.22 area.
Historical price action shows that the $0.220 to $0.236 range has repeatedly attracted buying interest. However, to reverse the current weakness, large-scale whale buying alone is not enough; the price also needs to be supported by a clearer inflow of funds and an expansion of buying interest.
Liquidity increased but activity remained weak.
The size of stablecoins on the Cardano blockchain has recently increased. Data shows that its stablecoin market capitalization rose to $52.15 million, an increase of about 12% in one week. This indicates an improvement in on-chain liquidity.
However, network usage has not recovered in tandem. Cardano currently has approximately 24,700 transactions and about 16,500 active addresses, remaining at a relatively low level overall. Meanwhile, the total value locked (TVL) on-chain has decreased by 2.25% to approximately $148.75 million.
This also explains why ADA has been trading sideways and weak recently: on the one hand, large holders and stablecoin liquidity are sending positive signals; on the other hand, trading activity, address data, and locked-up amount have not yet aligned, so the price lacks the momentum to break upward.
