Defying Odds as ADA Surges Despite Challenges

• Cardano (ADA) has significant tailwinds that could push it to new highs, analysts suggest, including increasing staking and momentum that will break the $0.4 resistance.
• On-chain metrics such as market value to realized value and network realized profits/loss are bullish, and the Cardano Foundation’s commitment to stake 11 million ADA is encouraging.

The crypto market has been on an uptrend for months, with most tokens recording high double-digit gains in recent months. However, as the momentum slows, it’s critical to invest in cryptos that can sustain their gains in the medium-to-long term, and according to analysts, Cardano (ADA) is one of the best investments.

At press time, ADA trades at $0.3919, gaining marginally in the past day. Its weekly gains stand at 4.4%, while over the past 30 days, it has recorded a significant 41% uptrend. 

The all-important price level for Cardano is $0.4, and according to YouTube analyst LuckSide Crypto, it could break this resistance if BTC pushes higher.

“If we see this strength in BTC at the beginning of the week, ADA is going to make that move at 40 cents,” he told his 12,000 subscribers.

ADA has struggled with the 40-41 cents range this entire year. It rallied towards this level in February, then again in March and twice in May at the height of this year’s bull market but it kept getting rejected. LuckSide Crypto believes that ADA is only going to break this resistance if BTC shows sustained momentum and creates a new yearly high.

The analyst believes that BTC will finish the year above $40,000 and that it will only trend higher in 2024. As it approaches the halving, BTC will skyrocket as “assets have been suppressed for so long, they are waiting to explode.”

Even though ADA hasn’t blown up and done 4x like other assets in the space, know that those times are coming, and they are going to be happening a lot sooner than people realize.

On-Chain Data Indicates Great Times Ahead for Cardano (ADA)

On-chain data shows that Cardano is likely to extend its uptrend in the coming weeks. According to blockchain analysts at Santiment, there has been a sharp rise in the net realized losses for wallets that bought the token in the past month. Generally, such losses are usually followed by a bull market.

The market value to realized value (MVRV) metric is also bullish for ADA. Santiment data shows that a vast majority of addresses selling the token at current prices are selling at a loss. Typically, traders are unlikely to sell at a loss and will likely hold onto their tokens waiting for them to appreciate, and this usually ends up in a bullish trend.

Additionally, Cardano ecosystem metrics reveal a continued investment in the future of the token. The Cardano Foundation recently revealed it was staking over 11 million ADA tokens in its push to decentralize the network.

Data from Staking Rewards reveals that Cardano is the third-most staked crypto in the market after Ethereum and Solana and ahead of Avalanche, BNB Chain and more. Cardano investors have staked close to 23 billion ADA tokens, worth $8.51 billion at current market rates.

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