Cardano holders stay strong amidst the altcoin's recovery from recent drop
- 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
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
