- Cardano (ADA) is considered by analysts as one of the best cryptocurrency investments for the medium-to-long term.
- ADA is currently trading at $0.3919, with a 4.4% weekly gain and a 41% uptrend over the past 30 days.
The cryptocurrency market has experienced an extended uptrend in recent months, with many tokens posting significant double-digit gains. As market momentum slows, investors are seeking cryptocurrencies with the potential to sustain their gains over the medium-to-long term, and according to analysts, Cardano (ADA) is emerging as one of the top choices.
At the time of writing, ADA is trading at $0.3919, showing marginal gains in the past day. Over the past week, it has recorded a 4.4% increase, while its value has surged by an impressive 41% over the past 30 days.
The key price level to watch for Cardano is $0.4, and YouTube analyst LuckSide Crypto believes that ADA could break through this resistance if Bitcoin (BTC) continues to push higher. He shared his insights with his subscriber base of 12,000, stating, “If we see this strength in BTC at the beginning of the week, ADA is going to make that move at 40 cents.”
ADA has faced challenges around the 40-41 cents range throughout the year, with multiple attempts to breach this level. LuckSide Crypto believes that ADA will only break this resistance if BTC exhibits sustained momentum and achieves a new yearly high.
The analyst is optimistic about BTC’s prospects, forecasting that it will finish the year above $40,000 and trend even higher in 2024. He anticipates a significant rally as BTC approaches its halving event, asserting that suppressed assets are poised for a substantial breakout.
While ADA may not have experienced the explosive growth seen in some other assets in the crypto space, LuckSide Crypto suggests that such times are on the horizon and could arrive sooner than expected.
On-Chain Data Supports ADA’s Positive Outlook
On-chain data provides further evidence of Cardano’s potential for an extended uptrend in the coming weeks. Santiment, a blockchain analysis firm, has noted a sharp increase in the net realized losses for wallets that acquired ADA in the past month. Historically, such losses have often preceded a bullish market.
The market value to realized value (MVRV) metric for ADA is also showing a bullish trend. According to Santiment, a significant majority of addresses selling ADA at current prices are doing so at a loss. This suggests that traders are more likely to hold their tokens in anticipation of future appreciation, a pattern often associated with bullish trends.
Additionally, metrics related to the Cardano ecosystem indicate ongoing investment and confidence in the token’s future. The Cardano Foundation has recently disclosed staking over 11 million ADA tokens as part of its efforts to decentralize the network.
Data from Staking Rewards reveals that Cardano is the third-most staked cryptocurrency in the market, trailing only Ethereum and Solana and surpassing others like Avalanche and BNB Chain. Cardano investors have staked close to 23 billion ADA tokens, equivalent to approximately $8.51 billion at current market rates.
