February 12, 2024
Cardano, the eighth-largest cryptocurrency by market capitalization, has recently gained traction, with bulls pushing the ADA price to a six-day high of $0.566 on Feb. 11. Although ADA prices have retreated, the cryptocurrency is still up 7% weekly.
At the time of writing, Cardano's ADA has fallen 3.59% in the last 24 hours to $0.536, mirroring general market declines.
Despite the recent market volatility, a significant number of Cardano holders have demonstrated their belief in the project's long-term potential. According to on-chain data, many ADA holders have held onto their coins for more than a year, indicating their confidence in the asset's future value.
These long-term holders, also known as "HODLers" in the crypto world, provide a consistent and devoted foundation of support for the Cardano project.
Data from blockchain analytics startup IntoTheBlock reveals that 23% of Cardano investors have held onto their ADA for the past five years, controlling 7.085 billion ADA. Another 19.75% of investors have not sold their assets after purchasing them within the last six-to-twelve months, owning around 6.084 billion coins. Additionally, 16.74% of ADA holders have not sold their Cardano assets after purchasing them within the last 18-to-24 months, owning around 5.1 billion coins.
Crypto analyst Ali predicts that Cardano may face a significant obstacle between $0.54 and $0.56, where nearly 50,000 addresses hold approximately two billion ADA. However, overcoming this resistance could pave the way for a bullish move toward $0.68.
In conclusion, Cardano's long-term holders demonstrate their confidence in the project's future value. Despite market fluctuations, these HODLers provide a strong foundation of support for Cardano. The distribution of ADA holdings among long-term investors further highlights their optimism about the project's long-term prospects. Overcoming resistance levels could lead to a bullish move for the ADA price.