Recent data shows that the market sentiment around Cardano has dipped to a 5-month low, despite a rise in whale demand for its token ADA.
Market Sentiment Dynamics for Cardano
The sentiment surrounding Cardano is deteriorating, with market sentiment dipping to a 5-month low. While ADA's price has retreated nearly 20% from its August high, it still finished the month with a 9% rise. Analysts indicate this decline in sentiment could encourage long-term investors to purchase ADA at lower prices.
Increasing Whale Demand for ADA
Over the past two days, there has been a notable uptick in whale activity regarding ADA. Specifically, around $8 million in spot inflows from Binance whales was recorded. Inflows were also noted on OKX and Coinbase, although in smaller amounts. The derivatives segment shows positive growth with over $51 million in demand on Binance and more than $12 million on OKX.
Cardano's Regulatory Wins
Cardano has lagged behind in popularity compared to Ethereum and Bitcoin, but this may change. Recently, the Clarity Act singled out Cardano as one of three major blockchains likely to comply with strict U.S. standards. Additionally, the conclusion of an investigation against Cardano cleared it of any prior wrongdoing.
Despite the current challenges in market sentiment, positive trends such as whale accumulation and support from the Clarity Act could foster renewed interest in Cardano and its token ADA.
