The renowned crypto analyst Ali recently marked the critical challenge on the way of Cardano (ADA). Based on his analysis, there is a strong resistance to ADA, ranging between $0.54 and $0.56. This zone is of utmost importance because it hosts close to 50,000 addresses that together hold nearly 2 billion ADA. Ali believes that breaking past this resistance might open a bullish path for Cardano that enables its value to reach up to even the $0.68 mark.
According to CoinMarketCap, as of now, the price of Cardano stands at $0.534398. The total trading volume of 24 hours stands at $370 million, and the price change within the period is -3.87%. Nevertheless, during the week, the cryptocurrency has presented itself to be among the strong ones, showing a surge of 6.57%.
Cardano Long-term Holder Confidence
Among the market dynamics for Cardano, Pieter Nierop, a great active supporter of Cardano, gave insights into the ecosystem. Nierop highlighted that individuals were holding for a relatively longer period of time, and a larger part of the total supply was being taken by many individual holders as opposed to institutional entities. This gives room for a bullish observation that institutions’ access to ADA will be hard due to its relatively low supply.
Additionally, Nierop pointed out the trend of ADA that is getting locked in smart contracts, and expects a supply shock to occur very soon. Long-term ADA holders, in believing and having deep faith in the project, are not willing at all to let go of their holdings, which per se shows a certain degree of confidence in the technology behind Cardano and the promises it offers for the future. This sentiment is in line with the narrative of ADA being a digital asset with intrinsic value as “digital gold.”
Looking ahead, Nierop thinks that a shift in market perception will be seen as people realize ADA has an outstanding value proposition. However, the estimated global population is more than 8.8 billion, and the amount of ADA per person potentially owned is low, given that some may hold substantial amounts of it. This disparity in ownership underscores the scarcity of ADA and the potential for increased demand as awareness grows.
