Cardano’s ADA, the native cryptocurrency of the Cardano blockchain, is attracting renewed attention from traders who believe the altcoin may be undervalued and ripe for a bullish reversal. Despite the challenges of attracting new users in a competitive landscape, Cardano has maintained a remarkably stable user base.
According to an analysis by IntoTheBlock, the number of Cardano addresses holding a balance has remained consistently around 4.45 million for over a year. The network’s transaction count and active user base have also remained steady since April, demonstrating the commitment of its existing community. Cardano’s daily on-chain volume consistently settles around $7.2 billion, surpassing many other networks. This impressive volume combined with a low Network Value to Transactions (NVT) ratio of just 2.62 suggests that Cardano’s native token might be priced lower than its true value.
This stability highlights Cardano’s resilience in the face of competition from other networks like Solana and Base. Furthermore, the high percentage of ADA held by long-term holders, nearly 40% of the total supply, underscores their confidence in the network’s future.
Recent data from IntoTheBlock points towards a growing optimism around Cardano. Large transaction volume has increased by 2%, and daily active addresses have surged by 20%. Transactions exceeding $100,000 have climbed from 288 to 337 in the past 48 hours. These indicators suggest increasing activity and potential investment interest.
While Cardano’s price has dropped over 58% from its peak in March 2024, it currently forms a bullish pennant, a technical pattern often associated with a potential reversal. A 3-day RSI analysis reveals a hidden bullish divergence, further hinting at a possible upward price movement. Cardano remains within a trading range established since May 2022, further bolstering the case for a potential bullish breakout.
The combination of Cardano’s stable user base, strong long-term holder confidence, and growing transaction volume has piqued the interest of traders seeking potential undervaluation and bullish momentum. With a favorable technical pattern and hidden bullish divergence on the RSI, the potential for a price reversal is attracting attention and fueling speculation within the crypto community.
