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Cardano Crisis Or Comeback? ADA’s Key Metric Hits Low, What This Means For Investors

Data from analytics platform IntoTheBlock have illuminated a troubling trend within the Cardano (ADA) network, showing a significant dip in ‘profitability’ for its holders.

While cryptocurrencies like Bitcoin and TRX show a high percentage of holders in profit, Cardano stands in stark contrast, with only 35% of its holders currently seeing gains.

This insight into the Cardano ecosystem reveals deeper challenges, as many of ADA’s transactions now appear to be at a loss.

Details Into ADA Investors Profitability

The report’s specifics indicate that out of 1.59 million addresses holding 14.07 billion ADA, a substantial amount of these tokens were acquired at higher price points that are not profitable under current market conditions.

In particular, 2.73 million addresses are underwater, holding 20.07 billion ADA purchased at price levels between $0.5975 and $0.7265. This significant segment of loss-bearing investments places downward pressure on ADA’s market price, contributing to recent price volatility.

Cardano (ADA) holders metric.

Despite the immediate bearish outlook, ADA has shown resilience with a weekly gain of 4.2%, bringing its price to $0.4661 at the time of writing. This slight recovery suggests that while short-term pressures are evident, investor confidence remains in the token’s fundamentals.

Notably, the crypto community is buzzing about potential future gains for ADA based on historical data and technical analysis. Prominent crypto analyst Ali has pointed out that ADA’s Market Value to Realized Value (MVRV) ratio is lower than -22%, indicating that the asset is significantly undervalued.

This situation is similar to June 2023, following which ADA experienced a substantial 75% increase in value. Ali forecasts a potential surge in ADA’s price to $0.80 from these past trends, which would mark a significant recovery and the highest value for the token in over a year.

Cardano Technical Analysis Supports Bullish Predictions

Another analyst, Trend Rider on X, further supported the optimistic projections for ADA and noted that Cardano’s technical indicators signal a potential bull run.

According to Trend Rider, ADA’s Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers form a pattern that mirrors previous setups, leading to major price increases. For instance, a similar formation was observed before ADA’s monumental rise from $0.05 to $3.00.

This confluence of technical and market value analyses presents a compelling case for Cardano’s potential turnaround. While current holder profitability is low, the technical indicators and historical performance suggest that ADA could be on the cusp of a significant upward trajectory.

ADA price chart on TradingView

Featured image from Unsplash, Chart from TradingView

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ADA Price Breakout: Analyst Predicts New All-Time High As Cardano Surges by 30%

Cardano (ADA), the ninth-largest cryptocurrency in the market, has experienced a significant price breakout, reaching $0.710 on Thursday for the first time since May 2022. 

This marks a pivotal moment for ADA as it emerges from a prolonged consolidation phase encompassing the latter part of 2023 and the initial month of 2024. With the price surge, ADA now sets its sights on the $1 mark, which it last achieved in April 2022.

ADA Primed For New All-Time Highs? 

The recent price breakout has sparked predictions of an imminent continuation of ADA’s uptrend, with notable potential to reach new all-time highs (ATH). Crypto analyst Trend Rider has conducted an in-depth analysis of ADA and issued an alert, signaling the possibility of a new all-time high.

According to Trend Rider, there has been a significant increase in the Trend Strength Indicator, which resembles the beginning of the legendary rally that took ADA to $3.6. In addition, with Bitcoin (BTC) nearing its peak, the analyst believes the stage is set for ADA to close the gap and rally to $3.6.

Furthermore, Trend Rider highlights the bullish nature of ADA’s Moving Average Ribbon and Money Flow Oscillator, which have turned positive after 200 weeks. These macro factors underscore the positive sentiment surrounding ADA’s potential for growth. 

Cardano

Additionally, the analyst emphasizes that ADA demonstrates bull run signals previously observed when the token traded at $0.10, just before it skyrocketed to $3. Trend Rider suggests that the shift in trend indicators from bearish or neutral to bullish further reinforces the positive outlook for ADA’s price trajectory. 

Cardano Market Cap And Trading Volume Soars

Coupled with ADA’s bullish indicators, Cardano has seen notable growth in various key metrics, according to data by Token Terminal. 

Over the last 30 days, ADA has shown significant progress in market capitalization, trading volume, and fee generation. At the same time, fees incurred by ADA holders have decreased, providing further insight into the token’s recent performance.

Cardano’s fully diluted market capitalization has surged to $28.09 billion, marking a 27.4% increase over the past month. This metric accounts for the potential total value of all ADA tokens if they were in circulation. 

Similarly, the circulating market capitalization, which reflects the value of ADA tokens currently available, has experienced a significant boost, reaching $21.94 billion, representing a 27.7% rise.

Cardano

Cardano has demonstrated its popularity in terms of trading activity, as the token’s 30-day trading volume stands at $14.69 billion. Although this figure reflects a minor decline of 4.0% compared to the previous month, it still showcases ADA’s robust liquidity and investor interest.

As for fees incurred within the Cardano ecosystem, the 30-day fee generation amounted to $396,78K, indicating a decrease of 9.7%. This fee decline suggests improved cost-efficiency for ADA holders during the given period. 

Cardano

Currently, ADA is trading at $0.682, experiencing a slight correction in the past few hours. However, when examining longer time frames, the token has demonstrated significant gains of 14%, 13%, and 30% over the past seven, fourteen, and thirty days, respectively. 

Featured image from Shutterstock, chart from TradingView.com

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On The Brink Of Breakthrough? Analyst Foresees Cardano (ADA) Hitting New Annual Heights

Market analyst Ali Charts has recently shared insights on the Cardano (ADA) market trajectory. Observing recent trends, ADA appears to be in a bearish phase.

In the last 24 hours, mainly, the asset has witnessed a 2.8% decline, resulting in its trading price falling to $0.37. However, despite the current dip, Ali offers an optimistic outlook, suggesting that Cardano may be gearing up for a significant price surge, possibly reaching its highest point for the year.

Analyst’s Positive Outlook On ADA: Understanding The Demand Zone

In an X post uploaded earlier today, Ali shared his analysis on ADA, highlighting a crucial demand zone around the $0.37 and $0.38 marks. The analyst notes the substantial buying activity in this range, with over 166,470 wallets having purchased ADA at these levels.

Ali states this robust demand indicates a strong support level at these price marks. With minimal resistance ahead, Ali’s analyst suggests that ADA could see an increase, potentially surpassing its yearly high of $0.4518.

Notably, while the analyst points out that the current buying trend at the demand zone is a positive indicator of ADA’s strength, the analyst also cautions investors to remain vigilant. A failure to maintain support in this zone could result in ADA’s price dropping to lower levels, such as $0.34.

Cardano (ADA) Latest Price Action

Recently, ADA has experienced a downturn, with its value decreasing nearly 5% over the past week. This downward trend has continued in the last 24 hours, with a 2.5% decline, bringing its trading price to roughly $0.378. This price point is significant as it aligns with the strong support level identified by analyst Ali.

Cardano (ADA) price chart on TradingView

As highlighted above, according to Ali, a drop below this support level could potentially lead to a further decrease to around $0.34. Conversely, if ADA stabilizes or rebounds from this level, it may set the stage for a climb to new yearly highs.

While ADA has faced a bearish phase recently, a broader perspective reveals a more positive outlook. Over the past month, ADA has demonstrated a 29% increase, and even considering the past two weeks, it maintains a 3.2% gain.

Meanwhile, the asset’s daily trading volume has since been on a downward trend over the past weeks. In the past 24 hours, ADA’s daily trading volume has stood at $255 million, a significant plunge from over $600 million in the middle of this month.

Featured image from Unsplash, Chart from TradingView

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Analyst Calls ADA Amazon Of The Crypto World, Forecasts Bright Future Ahead

Amid increased price fluctuations in the crypto market, Crypto Capital Venture founder Dan Gambardello is bullish about Cardano’s (ADA) future. In his latest YouTube video, Gambardello compared Amazon’s stock price trajectory to Cardano’s, highlighting striking similarities between both companies.

While he acknowledged ADA’s two-year-long bearish market conditions, the analyst believes that, like Amazon, Cardano has the potential for long-term growth. Since both entities’ technology differs with varying achievements, he compared the underlying principles and price action.

Cardano’s (ADA) Current Market Condition Is Similar To Amazon’s Early Years

Gambardello highlighted Amazon’s historical price performance between 1999 and 2001. According to him, Amazon stock nosedived from a $5.25 all-time high price to 30 cents between this timeframe. 

Similarly, ADA’s value, which rose above $3 during the bull market in September 2021, has now plummeted to 25 cents. Therefore, the analyst likened buying ADA in 2023 and acquiring Amazon stocks in 2001. 

This is particularly true given Cardano’s growth potential in the financial market. Moreover, Gambardello forecasted that Cardano (ADA) could become the world’s number one financial operating system. 

In addition, he mentioned that currently, ADA’s market cap is approximately $8.9 billion. That is even 90% higher than Amazon’s market cap of $2.2 billion after a similar crash in 2001.

The crypto analyst cited a letter from Jeff Bezos to Amazon shareholders during the downturn. In the letter, Bezos stressed that Amazon stood stronger despite the massive stock price drop. 

In his comparison, Gambardello drew similarities between ADA’s current position and Amazon’s during the downturn. He noted that Cardano Blockchain is more robust and better than before, citing improved smart contracts, scalability, and staking utility. 

ADAUSD price chart

Cardano Has Potential For Long-term Success Like Amazon

Gambardello also likened ADA to the stock market, quoting a prominent crypto investor, Benjamin Graham. He said: “The stock market is a voting machine in the short run and a weighing machine in the long term.” Also, he noted that, like Amazon, Cardano’s fundamentals are strong enough to sustain it even in harsh economic conditions.

The crypto analyst emphasized that Cardano is in the initial stages of user adoption, with several developers building on its network. It is similar to Amazon’s commitment to enhancing customer experience, which fueled its long-term growth. 

Again, Gambardello shifted focus to Cardano’s security and decentralization. He explained that Cardano’s robust security and decentralization give it an edge over other blockchain networks like Solana.

He further mentioned that several startups have adopted Cardano as of September 2023. For instance, World Mobile utilized Cardano’s infrastructure to connect the unbanked and financially underserved people. According to Gambardello, this real-world use case is a game changer and starting point for Cardano’s success.  

In conclusion, the analyst said Cardano has numerous unexplored potentials with striking similarities to Amazon’s early days. Therefore, he is confident that Cardano has a high potential for long-term success and could offer massive returns to investors bullish enough to see it.

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Cardano Sees A Spike In On-Chain Activity, Should You Buy ADA Now?

Charles Hoskinson, Cardano (ADA) founder, has explained how the cryptocurrency’s future privacy protocol (Midnight) would work within their ecosystem. 

In a recent YouTube interview, he claimed that the planned integration would help establish a confidentiality network of smart contracts. According to him, Midnight aims to resolve the paradoxical issue of having privacy and disclosure of a protocol’s rules simultaneously.

The announcement yielded positive results, evident with a spike in on-chain activity. Data from Santiment on Cardano’s Age Consumed showed a movement of over 107 billion ADA (including old coins) on December 7. 

Cardano’s Growth Booster: New Privacy Protocols And A Surge In On-Chain Activity

Below are the critical remarks made by Charles Hoskinson in the interview streamed on Corey Costa’s Crypto Coins YouTube channel.

From a regulatory perspective, you’re not actually allowed to use blockchain systems [for privacy]. Why? There’s [the] Bank Secrecy Act, GDPR [General Data Protection Regulation], you have all these privacy departments.

He continued:

Anytime you could engage in a regulated business, there’s a privacy requirement because regulated business requires you to give away some personally-definable information, and there’s a privacy law on the other side of it that says you have to keep it a secret.

Hoskinson further added,

The problem is that if you try to do it in a blockchain setting, your private information becomes public to everybody… so it made sense to me to find a way to… create a confidentiality network, so like what Ethereum did to Bitcoin, where Ethereum said ‘we have programmability,’ Midnight does to [Cardano], where instead of having a privacy coin, what you do is you have a confidentiality network, you have smart private contracts.

Cardano’s Midnight targets a general issue—concurrent privacy and disclosure legislation—that most blockchain protocols face. And the result is a surge in on-chain activity, which many experts believe would add more value to the network.

ADAUSD

Should You Buy Cardano Now?

Please note ADA has a fixed maximum supply of 45 billion tokens maximum supply. This figure would eventually have an impact on the cryptocurrency’s value in the future when it reaches its max supply. The future value of this coin may depend on its new privacy technology.

Cardano Crypto (ADA), according to CoinMarketCap, traded at a 3.33% loss. Even on its intraday charts, it prints a 0.12% loss. However, it experienced much volatility before grabbing profits. On the bright side, the token’s wallet addresses have increased, signaling a possible spike in demand. Possible catalysts could be the blockchain’s increased push for development. We can only wait to see how this surge affects the overall sentiment.

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TA- Price Of Cardano Bounces From Support, Gears For A Bullish Run

The price of Cardano (ADA) has shown bullish signs and could be set for a major run against Tether (USDT) after bouncing from key support.

Ethereum price rallied with so much strength from a region of $1,670 to $2,000 ahead of Ethereum merge. This has brought relief bounces for many altcoins, including the price of Cardano (ADA).

Ethereum merge is an upgrade on the Ethereum network from Proof-Of-Work (POW) to Proof-Of-Stake (POS) so as to increase its network efficiency in transactions. (Data feeds from Binance)

Price Of Cardano (ADA) Weekly Chart Analysis
Weekly ADA Price Chart | Source: ADAUSDT On Tradingview.com

From the chart, the price of ADA saw a weekly low of around $0.4, which bounced from that area and rallied to a price of $0.55.

The price has built more momentum as it faces resistance at $0.66.

If the price of ADA on the weekly chart continues with this bullish structure, it could quickly revisit  $0.66 and trend higher to $0.75.

Weekly resistance for the price of ADA – $0.66.

Weekly support for the price of ADA – $0.45.

Price Analysis Of ADA On The Daily (1D) Chart
Daily Price Chart For ADA | Source: ADAUSDT On Tradingview.com

The price of ADA found strong support at around $0.45, with what seems to be an area of interest on the daily chart.

ADA bounced from its support and has rallied as it faces resistance at $0.63. The price of ADA has continued to range in a channel; breaking out of this channel could send the price of ADA to the resistance at $0.63.

At the point of writing, the price of ADA is at $0.55, above the 50 Exponential Moving Average (EMA) with a price of $0.5.

If the price of ADA holds the support of $0.5 successfully, we could see the price trending higher. If the price of ADA gets rejected, $0.5, which corresponds with 50 EMA, will be good support for buys.

The Relative Strength Index (RSI) for the price of ADA on the daily chart is above 65, indicating healthy buy bids for ADA.

The volume for ADA indicates buy bids, this shows bulls would want to push the price higher.

Daily (1D) resistance for ADA price – $0.66.

Daily (1D) support for ADA price – $0.5.

Price Analysis OF ADA On The Four-Hourly (4H) Chart
Four-Hourly ADA Price Chart | Source: ADAUSDT On Tradingview.com

The price of ADA has continued to maintain its bullish structure after a successful break above the ranging channel. 

ADA is trading above the 50 and 200 EMA with prices of $0.52 and $0.5 acting as its support on the 4H chart, should the price of ADA gets rejected due to the weekend sell-off.

If the price of ADA holds above the support of 0.52 with the good volume, we could see prices trending to $0.66. In case ADA experiences a sell-off, 50 and 200 EMA prices would act as support for ADA prices.

Four-Hourly (4H) resistance for ADA price – $0.66.

Four-Hourly (4H) support for ADA price – $0.52, $0.50.

Featured image from NewsBTC, Charts from TradingView.com

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Cardano (ADA) Forms Local Resistance As It Readies For Another 40% Liftoff

Cardano (ADA) has been on the receiving end on some of the most brutal beatdowns the crypto market has dished out in recent times. The cryptocurrency had managed to grow from about $0.20 at the beginning of 2021 to a high of $3, which saw investors cashing out massive gains. However, the trip down would prove to be just as swift and impactful as the trip up.

ADA has since lost about 60% of its all-time high value, falling below $1 for the first time in eight months. Since the digital asset has spent such a long time in a downtrend, there looks to be nowhere to go but up as ADA plots its move upwards after forming a local resistance point.

ADA Ready For Takeoff

After a long time in a downtrend, ADA has finally formed a local resistance. With this resistance, the digital asset is looking towards a liftoff from this point. One thing to note is that even when the rest of the market had begun to rebound, Cardano had continued to trend low. Momentum stayed down, translating to no meaningful movement despite the market gaining over $200 billion in a single weekend.

Related Reading | Cosmos Records 20% Gain, What’s Behind The Boom In Its Ecosystem

A look at the charts shows that this may have positive connotations for the value ADA going forward. For instance, ADA is now trading in a support zone between $0.90 and $1.20, as illustrated in this analysis by a trader. It is doing this while the rest of the market is already recovering significant portions of its lost value during the crash, showing that it has indeed formed local support.

Cardano To Bounce 40%

Looking at the past, a few things of note show that this is an important point for Cardano. One of these is the historical data that outlines what ADA has done after forming a local resistance. Like clockwork, the price of the digital asset has been able to bounce up from its support zone the past three times this has happened. There is nothing to suggest that this cannot happen for the fourth time.

ADA readies for takeoff | Source: ADAUSD on TradingView.com

Furthermore, the local strong resistance zone happens to coincide with the 0.3 Fibonacci correction level, indicating that the digital asset is currently undervalued. Sticking with this analysis, ADA may see a 35% to 40% bounce upward from its current point if history repeats itself. This will catapult ADA out of its current trend, breaking through months of low momentum towards the $1.55 to $1.65 point, where it will form another local resistance zone.

Related Reading | Cardano Zooms Up By 6%; How Soon Will It Target $1.4?

The rest from here on out is mainly a waiting game. The network is seeing increased adoption due to its first major DEX, SundaeSwap, launching on the blockchain. As ADA usage on the network grows, so does the likelihood of a bounce.

Featured image from The Balance, chart from TradingView.com