While Cardano’s market value faces significant downward pressure, approaching its yearly lows, a notable divergence is emerging. On-chain data reveals that large-scale investors are actively buying the dip, even as broader market sentiment remains cautious. This accumulation coincides with a pivotal moment for the ecosystem: the launch of its crucial “Midnight” privacy-focused project.
Strategic Treasury Investment Approved
Beyond price action, Cardano’s governance structure has greenlit a substantial infrastructure investment. A proposal to allocate 70 million ADA (approximately $30 million) from the project’s treasury has been approved. This initiative unites the ecosystem’s five core entities, including the Cardano Foundation and IOG (Input Output Global).
The capital is earmarked for developing essential financial infrastructure. Specific goals include integrating major stablecoins, creating institutional-grade custody solutions, and building more efficient bridges to other blockchain networks. These developments are intended to directly boost liquidity within Cardano’s decentralized finance (DeFi) sector.
Whale Wallets Signal Confidence
Despite a price decline of roughly 20% over the past 30 days, blockchain analytics show pronounced accumulation by wealthy addresses. So-called “whale” wallets, holding between 1 million and 100 million ADA, have purchased approximately 348 million ADA in recent days. This acquisition, valued at around $204 million, suggests that sophisticated market participants are positioning for a potential recovery following the correction.
Should investors sell immediately? Or is it worth buying Cardano?
Currently, ADA is trading near $0.41, hovering just above its 52-week low of $0.39. The technical chart picture is weighed down by a “Death Cross,” where the 50-day moving average crosses below a longer-term average, contributing to the short-term selling pressure.
Midnight Network Launch Enters Critical Phase
A dominant development this week is the official commencement of the Midnight network. On December 4th, the project’s native NIGHT token was transferred onto the Cardano blockchain as a native asset. Midnight operates as a data-protection-focused sidechain, aiming to merge regulatory compliance with robust data security—a niche where developers anticipate long-term competitive advantages.
To prevent market saturation, the Midnight Foundation has instituted a phased release schedule. The actual token redemption process, termed the “Glacier Drop,” is set to begin on December 10th and will span 90 days. This mechanism is designed to ensure a controlled distribution of the new tokens.
Investor attention is now fixed on December 10th. The initiation of the NIGHT token redemption, coupled with the newly approved treasury investment, could provide the fundamental catalysts the market has recently lacked. However, if price support around the $0.41 level fails to hold, a retest of the liquidity zones near the annual low becomes the next probable scenario.
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