- Cardano investors faced significant losses in June, totaling nearly $40 million, as large whale transactions peaked and holders continued to shed ADA at a loss.
- Despite the bearish sentiment, on-chain data suggests potential for a rebound, with bullish whale accumulation in select segments signaling a possible rally ahead.
Cardano (ADA) investors have faced a tumultuous June, marked by significant losses and notable shifts in whale holdings. According to recent data, ADA holders have collectively realized losses amounting to nearly $40 million within the first ten days of the month. This bearish sentiment is mirrored by a peak in whale transactions, where large holders continued to shed ADA at a loss.
The on-chain data, sourced from crypto intelligence tracker Santiment, reveals a complex picture of ADA’s recent market dynamics. It shows that while some segments of ADA whales distributed their holdings at a loss, others accumulated the altcoin, suggesting divergent market strategies among large holders.
The cohort of whales holding between 100 million and 1 billion ADA tokens, for instance, dramatically increased their holdings by 340 million ADA between May 29 and 30. However, these same whales have since been consistently shedding their ADA holdings. On the other hand, whales holding between 10 million and 100 million ADA tokens sold off 290 million ADA overnight at the end of May but have added 20 million ADA back to their wallets in June. This indicates a tactical approach by whales, possibly in response to market conditions.
Moreover, large wallet investors, holding between 100,000 and 1 million ADA, have taken advantage of the recent dip in prices to accumulate an additional 10 million tokens in June. This segment’s activity suggests a bullish outlook among smaller institutional investors.
The Network Realized Profit/Loss (NRPL) metric further underscores the prevailing sentiment. It measures the net profit or loss of all ADA tokens moved on a given day, revealing that ADA holders, in general, have experienced substantial losses in June. Such a pattern often accompanies capitulation, a phase of panicked selling that tends to precede a market recovery.
Despite these challenges, there are potential signs of hope for ADA investors. On-chain metrics suggest that a rally may be on the horizon, supported by bullish whale accumulation in certain segments. This shift in supply dynamics could potentially lead to renewed investor confidence and price stabilization.
At the time of writing, ADA’s price on Binance reflects a modest gain of 0.65%, reaching $0.4461. Over the past seven days, the price of Cardano has remained relatively stable. However, with on-chain metrics pointing towards a potential recovery, ADA investors may find themselves in a position to capitalize on future price movements.
While ADA holders have faced significant losses in June, the strategic movements of whales and the underlying on-chain data suggest that Cardano may be poised for a rebound. Investors should keep a close eye on whale activity and on-chain metrics for further insights into ADA’s market trajectory in the coming weeks.
