Can Cardano’s Long-Term HODLers Finally Push ADA Above $1?

Key Insights

• Cardano (ADA) price is up 10% in the last 24-hours
• A healthy rise in long-term holders and short-term holders can promote price growth
• Cardano recently introduced its scaling solution Orbis

After repeated price dumps over the last months, few cryptocurrencies have started new price rebounds.

While a much-anticipated relief rally after the Russia-Ukrain tensions came into play, some coins did better on the one-day price chart than others. Notably, Ethereum, Cardano, Terra, and Avalanche were among the top gainers in the top ten coins by market cap

Cardano (ADA) had more investor eyes on it at the moment due to impressive holder statistics, recent developments, and some perplexing indicator movements. 

HODLers Rising Whales Dumping

Interestingly, Cardano shark addresses holding 10K to 100K ADA have historically done a pretty outstanding job at calling tops. Data from analytics website Santiment highlighted that these addresses had added approximately 6% more of the overall ADA supply over the past five weeks. 

That said, the group that holds 100K to 1000K ADA dumped from 37.0% to 17.7% of the supply held in just the past three months. Since these two indicators moved in opposite directions, they wiped out their effects, creating a primarily neutral indicator.

Cardano HODLers, however, have shown some decent persistence as holder numbers continue to grow despite the recent price pullback. Data from IntoTheBlock highlights that addresses holding the coin for more than one year have hit a multi-year high with close to 9.98 Billion ADA HODLers at press time. The last time the same number was seen was in December 2019. 

Furthermore, the number of cruisers or short-term holders holding the coin for 1-12 months has also been on a healthy rise. 

ADA HODLers in Loss

Even though ADA sharks have risen in number, it is notable that the 7th ranked coin by market cap was still trading under the $1 mark, almost 70% down from its all-time high price of $3.1. 

At press time, ADA traded at $0.8759, noting close to 10% daily gains even though its price was still down 12.83% on the weekly chart. 

While there was a healthy uptick in long-term and short-term holders for ADA, only 8.25% of Cardano holders made money at press-time prices. Notably, at the $0.87 price level, 3.95 million addresses or 83.20% of all addresses were Out of Money (taking losses) as per data. 

Furthermore, Cardano in its latest development, Cardano introduced its scaling solution Orbis, which is set to leverage zk-rollups. Seemingly, while ADA’s path for a monumental rise seems paved, its price would first need to make a move above the $1 mark before any true ADA recovery rallies can be anticipated.