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Cardano price pays off investors' patience with a new 2023 high, hints at what is about to come next

  • Cardano price marked a five-month high on April 13 after charting a 5% rise to trade at $0.425.
  • Cardano long-term holders have been maintaining their stance since the beginning of 2023, which could be paid off soon.
  • Regardless, when it comes to on-chain transactions, investors are still observing more losses than profits.

Cardano price has been on an impressive streak of green candles for the last four weeks, making investors anxious for profits. But while the recent rally has been in favor of the altcoin, ADA holders might have to hold on for a while longer before their investment becomes green.

Cardano price to chart another rally

Cardano price has shot up by nearly 40% since mid-March to bring the altcoin to trade at $0.425. The last time ADA was at this price level was before the FTX collapse-induced market crash in November 2022.

The reason why this rally matters significantly is that for the first time in five months, investors are looking at a promise of profits, which comes very rarely to Cardano holders. According to popular analyst Ali, ADA is on the verge of forming an inverse head and shoulders pattern.

The confirmation of this pattern would suggest that a potential 44% rally is on the way and could push the altcoin toward $0.60.

Should this setup play out and Cardano's price reach $0.60, nearly 2.76 billion ADA would turn profitable once again. Investors that bought their holdings at an average price of $0.548 have been waiting since August 2022 for their supply to turn green again.

As nearly $1.1 billion worth of profits enter the market, long-term holders that have maintained their bullishness for a year now would be paid off in some ways.

Cardano GIOM

Cardano GIOM

The cohort that has been holding on to their ADA for more than a year now holds the most dominance over the Cardano supply. These long-term holders, up until last year, constituted just 13% of all the addresses on-chain, whereas today, more than half the investors fall into this category.

This 51% domination over the addresses is a sign of perma-bullishness at the hands of ADA holders.

Cardano long-term holders

Cardano long-term holders

Such bullishness has enabled these investors to ride through the last few weeks, during which losses were running high. Despite the transaction volume shooting up since January this year, the daily transactions in losses outweighed the transactions in profit. The aforementioned long-term holders held through that as well, and their patience could pay off if ADA rallies to $0.60.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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