Major Investors Accumulate Cardano Amid Market Downturn

While Cardano's ADA token faces intense selling pressure and deteriorating market sentiment, a contrasting narrative is unfolding behind the scenes. Large-scale investors are strategically accumulating positions during this period of price weakness. Data reveals that over 37 million ADA tokens recently moved from exchange wallets to private storage—a traditional indicator of long-term conviction. This accumulation raises questions about whether the current price decline stems from more than just panic selling.

Market metrics paint a challenging short-term picture for Cardano. The long-to-short ratio has declined to 0.75, representing its lowest level in a month, indicating that traders are predominantly betting on further price deterioration. The Relative Strength Index reinforces this bearish outlook with a reading of 32, firmly positioning ADA in oversold territory and suggesting potential for a technical rebound.

Network activity metrics also show concerning trends. Daily active addresses have decreased from approximately 32,115 in mid-October to around 24,280 by early November, signaling diminished short-term engagement and demand for the network.

Institutional Accumulation Contrasts Retail Sentiment

Contrary to the prevailing negative sentiment among smaller investors, substantial holders are expanding their positions. Wallets containing between 1 million and 10 million ADA have collectively acquired an additional 50 million tokens in recent days. The persistent net outflows from exchanges are particularly noteworthy, as this trend reduces immediately available selling supply and typically reflects a long-term holding strategy among major investors.

Should investors sell immediately? Or is it worth buying Cardano?

This divergence between general market sentiment and whale accumulation patterns could potentially mark an inflection point if these large investors prove correct in their assessment.

Development Progress Outpaces Ecosystem Growth

Cardano continues to demonstrate robust development activity, recently surpassing both Ethereum and Solana in this crucial metric. The network's Ouroboros Leios upgrade has now entered the implementation phase, promising substantial enhancements to scalability and transaction processing speeds.

However, challenges persist within Cardano's decentralized finance ecosystem. The Total Value Locked remains relatively modest at $271 million. Founder Charles Hoskinson attributes this limitation not to technological shortcomings but to insufficient community coordination. His proposed solution centers on activating Cardano's 1.3 million ADA stakers to participate more actively in ecosystem development.