Cardano (ADA) was notable in the 2021 bull market but has struggled to gain significant price increases recently. Despite this, long-term ADA holders have hit an all-time high of 3.2 million, showing optimism.
In 2021, the number of holders fell as ADA’s price peaked. However, by January 2023, this trend reversed, and ADA’s price showed minor increases. Investors are now anticipating future growth.
While ADA’s price dipped, its long-term holder rise suggests hope for a rebound. However, ADA is trailing behind Solana (SOL) in attracting new users this cycle. Solana, while successful initially, is now seeing a decline in new and active users, indicating decreased short-term confidence.
ADA’s Market Value to Realized Value (MVRV) ratio is vital for price prediction. Currently, the 30-day MVRV ratio is -10.11%, indicating potential for future value growth as holders are likely to retain their assets.
From a technical standpoint, ADA’s Relative Strength Index (RSI) is at 39.55, suggesting continued bearish momentum unless conditions improve for buyers. If buying pressure increases, ADA might recover significantly.
