Cardano (ADA) continues to solidify its position in the crypto market, achieving a milestone with a record number of long-term holders. Despite the bearish perception surrounding the token, onchain metrics suggest that ADA is undervalued.
An analysis by crypto expert Dan Gambadello highlights crucial factors shaping Cardano’s trajectory, including its long-term holder base, growing global adoption, and ongoing technological developments.
What you'll learn 👉
Long-Term Cardano Holders Reach ATH
The percentage of ADA held by holders in the long term has reached an ATH. This is with nearly 40% of the total supply now held by investors for over a year.
This data, in Gambadello’s opinion, highlights Cardano investors’ strong convictions, which they stick fast to despite market swings.
Furthermore, 72% of ADA holders are classified as “hodlers,” emphasizing the growing belief in Cardano’s long-term potential.
This accumulation occurs as Cardano settles around $7.2 billion daily in on-chain volume, outperforming other networks. The Network Value to Transactions ratio stands at a low 2.62, further supporting the notion that ADA is currently undervalued.
Gambadello’s analysis points to these metrics as a sign of underlying strength in the Cardano network, despite its subdued price action.
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Show more +Global Adoption and Technological Advancements
Cardano’s adoption is gaining momentum across various regions. The Cardano Foundation is a major force behind the promotion of blockchain technology, and officials in Dubai have authorized the usage of Bitcoin and other cryptos for salary payments.
Furthermore, Cardano is becoming more and more popular in Argentina; a recent event there drew over 400 people, indicating the country’s growing interest in blockchain technology.
With advancements like Hydra, a scaling solution that increases transaction throughput, Cardano is making progress. At the Rare Evo event, participants even played the classic game Doom on Cardano using Hydra, which demonstrated the network’s ability to handle 11,000 transactions per second.
This breakthrough could lay the groundwork for Cardano’s use as a global payment system.
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Price Analysis and Market Outlook
Despite the positive developments, ADA faces critical resistance levels that it must overcome to initiate a bull run. The 20-month moving average at $0.40 is a key level to watch.
Breaking through this resistance could lead to an upward trend, potentially signaling the start of a new bull cycle. However, Gambadello advises caution, noting that the market remains volatile, and downside risks persist.
Historically, ADA’s price patterns have followed a similar trajectory, with periods of consolidation preceding gains. The current market environment, marked by fear and uncertainty, may present opportunities for those prepared to capitalize on a breakout.
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