- Cardano price has recovered from its recent drop as the wallet balance of long-term holders hits multi-year high.
- After a week of bearish price trend, Cardano climbed and ADA accumulated by investors hit $10.12 billion.
- Analysts are awaiting the final leg down before a trend reversal in Cardano price.
The overall crypto market capitalization dropped significantly, from $2 trillion to $1.7 trillion amidst rising geopolitical tension. Cardano holders have maintained their wallet balance above $10.12 billion ADA despite the price drop, fueling a bullish outlook.
Cardano holders remain bullish on ADA despite price drop
Despite the price drop and crypto bloodbath, Cardano holders have held above $10.12 billion worth of ADA. Cardano held in the holder's wallet has hit a multi-year high as traders increase the position of the altcoin in their portfolio.
$10.12 billion is the highest exchange balance in Cardano holder's wallet since December 2019. This marks a key milestone in Cardano's on-chain activity. As holders accumulate Cardano, it fuels a bullish narrative for the altcoin's price.
The Ethereum-killer's price suffered a downtrend for over a week. Proponents believe that the rise in on-chain activity and support from holders acted as a catalyst for Cardano price.
Scooping up Cardano from exchanges, investors have accumulated $11.2 billion ADA tokens overall. Analysts have evaluated the Cardano price trend and noted that the downtrend had lasted over six months. The altcoin could break its downtrend if the price climbs above $1.26, according to renowned cryptocurrency analyst @Phoenix_Ash3s.
Analysts believe that Cardano is currently in the oversold territory. From the trend perspective, @TrendRidersTR argues that all indicators remain bearish on Cardano daily chart.
@AltcoinSherpa, a pseudonymous crypto analyst, has noted that every bounce on the Cardano price chart is still getting sold off. The analyst is waiting for a final drop in price before a trend reversal.
The analyst would consider accumulating Cardano if the price plunges to $0.50.
$ADA: Every bounce is still getting sold off, waiting for a final leg down before a reversal. Would consider buying this at .50. pic.twitter.com/yfdwQpMy0l
— Altcoin Sherpa (@AltcoinSherpa) February 23, 2022
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.