$1 ADA Price Highly Imminent As Cardano Sees Record Holder Confidence Despite Price Lull

Cardano (ADA) is demonstrating a robust signal of holder confidence despite its price remaining subdued. 

On Tuesday, on-chain analytics firm IntoTheBlock revealed a resilient core of long-term investors, suggesting that despite current market conditions, significant upside potential could be on the horizon for ADA.

Notably, the firm noted that the number of unique addresses holding Cardano has remained steady for over a year at around 4.45 million. This plateau highlights a stabilization period following a surge in address growth that characterized the previous bull market when the coin surged to an all-time high of $3.10 in September 2021.

However, despite this past success and stability, the firm underscored that the Cardano ecosystem is facing a challenge, particularly attracting new users.

“During the last cycle, Cardano experienced significant growth, positioned as a strong alternative to Ethereum. However, in the current cycle, the network faces challenges in attracting new users, with much of the attention shifting towards platforms like Solana and Base.” The firm tweeted.

As recently reported by ZyCrypto, Solana has increasingly captured market interest over the past few months, particularly due to its burgeoning meme coin ecosystem, diverting attention from Cardano. This shift in demand is evident as Solana’s market capitalization has surged to the 5th position, reaching $68.27 billion, just below Ethereum. In contrast, Cardano has struggled to maintain momentum, slipping to the 10th spot with a market cap of $12.30 billion, even falling behind Dogecoin over the past week, as per CoinMarketCap data.

However, Cardano’s underlying fundamentals remain strong. The network continues to handle an impressive daily transaction volume of approximately $7.2 billion. This high level of activity contributes to a notably low Network Value to Transactions (NVT) ratio of 2.62, which, according to analysts at the firm, “could indicate ADA is undervalued.”

Moreover, Cardano’s long-term holder confidence is at a peak. Nearly 40% of ADA’s total supply is held by long-term investors, reflecting a high degree of commitment to the network’s future. This substantial holding suggests that despite current price trends, there is a strong belief in the token’s long-term value and potential.

In addition to these indicators, Cardano is set to advance its technological capabilities with the upcoming Chang hard fork, part of the network’s Voltaire Era. This significant upgrade aims to enhance decentralized governance and introduce new community-driven features. While anticipation around the hard fork is high, its immediate impact on attracting new users remains to be seen.

Given the current mixed developments, investors speculate whether the coin might be on the verge of a rebound. On Tuesday, analyst Trend Rider noted that ADA is maintaining crucial support around $0.32, following a notable bullish weekly rejection candle, emphasizing that “This could signal the bottom if the broader crypto market recovers.”

At press time, ADA was trading at $0.34, reflecting a 1.88% increase in the past 24 hours.