Cardano whales have achieved two significant milestones in their accumulation activities despite the token's 70% decline over the past year. According to Santiment data, wallets holding at least 1 million ADA now control 25.11 billion tokens, marking the highest level since December 2017 when whales held approximately 22.85 billion tokens. These large holders currently control more than 67.49% of the ADA supply, representing another record since mid-2020. With ADA price hovering around $0.23 at press time, these holdings are valued at approximately $5.77 billion. The whales' buying activity has been particularly aggressive since early 2021, potentially due to the network's improved performance amid regulatory backing. As Santiment notes, "When key stakeholders accumulate, this is generally a sign of confidence from the groups that are most deeply invested and have the most to gain/lose."
Despite growing whale accumulation, Cardano faces a significant crisis of trust within its community following recent developments. News that founder Charles Hoskinson's $250 million medical clinic in Wyoming will close in the summer of 2026 has triggered significant backlash within the Cardano community. According to multiple reports, persistent price stagnation in ADA has dented user confidence, with some longstanding independent outlets accusing Hoskinson of acting for personal gain. This crisis of trust continues to grip the community at large even as whale buying intensifies, creating a stark contrast between institutional confidence and broader community sentiment. The failure of peace efforts and heightened military tensions in the Middle East have prompted a rush to safe havens, with Bitcoin dropping below its weekly support at $74,148, creating additional headwinds for altcoin recovery.
Despite the whale accumulation, Cardano has continued to decline even as most altcoins experienced slight recoveries. The latest technical analysis from Santiment reveals that ADA is exhibiting a Neutral technical sentiment with mixed signals across key indicators. The Relative Strength Index (RSI) stands at -, while the MACD (12, 26) indicator is at -, providing neutral signals for short-term momentum. Other oscillators including the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm the neutral outlook. From a structural perspective, ADA is trading below its 60-day moving average of $0.23 and below its 200-day long-term moving average of $0.28**. Key price levels to watch include immediate resistance at $0.26 and strong support at $0.23, with a break above $0.26 potentially signaling bull continuation. However, as Trader 'Val Me' noted, ADA remains "weak on the higher time frame despite trading near a crucial support zone around $0.22," with the asset potentially facing a move toward $0.50 or a brief breakout before recovering.
While whale activity and liquidity growth remain bullish indicators, network metrics present a contrasting picture. According to the report, liquidity was growing with the stablecoin market cap on Cardano hitting $52.15 million, representing a 12% growth in just one week. However, other key metrics showed declining trends, with the number of transactions and active addresses at 24.74K and 16.48K respectively. The Total Value Locked (TVL) declined by 2.25% to around $148.75 million, creating a mixed signal environment that explains why ADA price action has been stalling around the same levels for months. This decline contrasts sharply with the broader crypto market experiencing a broad sell-off, with major coins like Bitcoin near $73,000, Ethereum around $2,000, and Solana below $85 all showing negative performance. The crypto market is experiencing a broad sell-off with major coins like Bitcoin near $73,000, Ethereum around $2,000, and Solana below $85, all showing negative performance, while the S&P 500 reaches new all-time highs.
Cardano's DeFi ecosystem faces significant challenges as total value locked has dropped dramatically from $721 million in 2024 to below $125 million, raising concerns about the network's growth potential. This substantial decline in DeFi activity contrasts sharply with the whale accumulation and suggests that while institutional investors remain confident, on-chain activity has not translated into meaningful user adoption. Analysts suggest that ADA must hold stronger support levels before any credible bullish recovery can occur, as the current price action and network metrics indicate that the token is struggling to find sustainable momentum. The combination of declining DeFi activity and technical weakness creates headwinds for price recovery, with the altcoin remaining bearish in the short term until it turns the slanting resistance around $0.28 into support. As crypto analyst Ali Martinez pointed out, Cardano's DeFi ecosystem has never crossed $1 billion in total value locked and still trails far behind rivals like Ethereum, while newer chains such as SUI have already seen stronger usage. He added that Cardano has yet to establish a clear niche that consistently draws developers, users, and capital.
