Smart Money Scoops Up Cardano as Retail Capitulates

The price of Cardano (ADA) remains under pressure, but it seems that its largest holders, also known as ‘smart money,’ are moving the other way.

As it happens, new data shared by blockchain and cryptocurrency market analytics platform Santiment in an X post on January 26 shows smart money wallets quietly accumulating hundreds of millions of ADA, whereas small retail holders are selling.

The divergence highlights a familiar market dynamic that often emerges near prolonged consolidation phases, and opens an important question for traders: Are large holders positioning early or simply absorbing retail sell pressure?

Smart Money Wallets Increase Cardano Exposure

According to Santiment, wallets holding between 100,000 and 100 million ADA have accumulated approximately 454.7 million ADA over the past two months.

At current prices, that accumulation is valued at nearly $160 million, despite Cardano’s token trading in a suppressed range. Specifically, ADA was at press time trading at $0.3487, up 0.1% on the day, down 2.4% over the week, and losing 5.6% on its monthly chart, per the latest information.

Historically, sustained increases among large holders tend to reflect longer-term positioning rather than short-term speculation. This behavior suggests that well-capitalized investors are gradually building exposure during periods of low enthusiasm.

Small Retail Wallets Continue to Exit Positions

As large wallets accumulate, smaller holders are heading in the opposite direction.

Santiment data shows that wallets holding 100 ADA or less have sold roughly 22,000 ADA over the past three weeks, a modest amount in terms of volume but significant as a sentiment signal.

Retail selling during extended drawdowns often reflects fatigue rather than conviction, in a pattern that has repeatedly appeared during previous market cycles.

Why This Divergence Matters for Cardano

The split between smart money accumulation and retail distribution points to supply transfer, where weaker hands exit, and stronger hands absorb liquidity.

Such phases don’t guarantee immediate upside. However, they often precede longer periods of stabilization, as selling pressure vanishes and ownership consolidates among investors with higher risk tolerance.

For the time being, Santiment’s data suggests Cardano’s largest holders are quietly increasing exposure, even as broader sentiment remains cautious.

Cardano Price Today

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