Cardano: Retail sentiment bottom out, whales may Accumulation

According to data from Santiment, the sentiment of retail investors towards Cardano (ADA) has become significantly pessimistic, with the positive/negative comment ratio falling to just 1.5:1 – the lowest level in the past 5 months.

Interestingly, this decline in sentiment coincides with a 5% rebound in ADA prices, suggesting that the sell-off stemming from disappointment may have inadvertently marked a local bottom.

In the past, ADA has often tended to initiate strong price increases when retail investor sentiment has fallen to its most negative levels. Conversely, extreme euphoria periods, such as when the comment ratio reached 12.8:1 earlier this summer, usually signal an impending deep correction.

Santiment noted that this pattern has also appeared in many other assets like Bitcoin and XRP: when the crowd is overly optimistic, they tend to buy at the peak; while in extreme pessimism, whales and long-term investors often take the opportunity to accumulate.

With Cardano, the gap between crowd sentiment and the current price volatility may be opening up an opportunity for large capital to enter, especially if retail investors continue to withdraw.