A recent report from on-chain analytics firm Santiment suggests Cardano is showing signs of being bullish, even as broader altcoin prices fall. The analysis indicates small ADA holders have been selling at a loss to large “whales”, consolidating supply.

On Wednesday, Santiment tweeted that Cardano’s market value had risen 7% day-over-day, contrasting with drops across most other major cryptocurrencies. Intriguingly, they note that the total number of Cardano addresses has been declining.

Source: Santiment – Start using it today

As Santiment states: “Typically, declining wallets is a sign of small holders capitulating & selling to whales at a loss.” This supply consolidation from smaller holders to larger ones can signify a bottoming out during bearish markets.

The initial 7% gain highlighted by Santiment has extended even further, as it made 5% gains today, making the total surge a little above 18% for the past 7 days.

This continued positive momentum aligns with the indicators of smaller investors selling at losses and distribution shifting more heavily towards sizable “whale” holders during the recent crypto downturn.

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In conclusion, Cardano’s rallying prices and consolidation of supply to larger holders points to a bullish outlook. Despite prevailing negative sentiment and falling valuations for altcoins in general, on-chain data suggests strong fundamentals for Cardano. An end to capitulation by small holders could signify that a bottom is in place, with recovering prices enticing prominent whales to accumulate more ADA holdings.

The post Cardano Bullish Despite Declining Altcoin Prices as More Small Holders Sell ADA to Whales at a Loss appeared first on CaptainAltcoin.

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