The cryptocurrency Cardano (ADA) has witnessed significant accumulation by large holders, often referred to as whales, over the past two months. This trend has occurred despite a general decline in ADA”s price, indicating a possible turning point for the asset. While institutional investors have been actively buying, smaller retail investors have been selling off their holdings, creating a stark contrast in market behavior.
Data from BeInCrypto Markets reveals that ADA has experienced considerable volatility, dropping approximately 19% in value over the past two months. Following a brief rally in January 2026, the altcoin faced a sharp reversal, diminishing much of its earlier gains. At the time of writing, ADA is valued at $0.35, reflecting a modest 2% increase within the last 24 hours, aligning with a broader market recovery.
Recent analytics from Santiment highlight that large holders, defined as those possessing between 100,000 and 100 million ADA, have accumulated a staggering 454.7 million ADA, translating to around $161.42 million. This ongoing accumulation signals strong conviction among these investors despite the prevailing bearish sentiment.
Further breakdown of wallet activity shows that those holding between 10 million and 100 million ADA have consistently increased their positions. Conversely, wallets with holdings between 1 million and 10 million ADA, as well as those with 100,000 to 1 million ADA, experienced a temporary slowdown in accumulation, although there was a revival of interest in January 2026.
In contrast, retail investors have been offloading their holdings. Over the past three weeks, smaller holders with 100 ADA or fewer have sold off approximately 22,000 ADA, valued at nearly $7,810. Santiment noted that this combination of whale accumulation alongside retail capitulation often indicates a potential recovery once the market stabilizes. According to their analysis, “When whales add & retails dump, this is historically an ideal setup for an eventual rebound when crypto markets begin to stabilize.”
Additionally, the fundamental adoption of Cardano remains robust. The number of ADA holders has increased from 3.17 million in November to 3.228 million, as reported by AdaStat. This growth of 50,000 new wallets signifies ongoing interest in the Cardano ecosystem.
The decentralized finance (DeFi) landscape within Cardano also exhibits resilience. Data from DefiLlama indicates that the total value locked (TVL) in DeFi protocols stands at $161.87 million, having increased by 1.53% in the past 24 hours. The TVL has remained close to 460 million ADA since October, demonstrating that capital continues to flow into the ecosystem despite declining prices.
Looking ahead, the critical question is whether the combination of rising adoption and sustained whale accumulation can lead to significant price increases for ADA. From a technical standpoint, some analysts are observing signs of a potential trend reversal. One analyst pointed out that ADA is consolidating within a historical demand zone, suggesting that clear accumulation is occurring at this level.
According to this analyst, repeated interactions with this demand zone enhance the likelihood of a bullish reversal, with three potential upside targets identified: $0.6386, $0.9358, and $1.3285. They emphasized that risk remains manageable as long as the price stays above this support zone.
However, challenges remain for the bullish scenario. Another analyst highlighted that ADA is still trading below key resistance levels, with significant sell walls present. These sell walls, formed by large clusters of sell orders at specific price points, can hinder upward movement until buying pressure is sufficient to absorb the selling supply.
In summary, while the data on accumulation and adoption suggests a constructive long-term outlook for ADA, the cryptocurrency must first navigate these resistance areas to initiate a sustained recovery.
