How this subset of Cardano’s HODLers may have fueled the cryptocurrency’s rally

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Cardano, despite its recent progress, continues to divide opinion in the crypto-space even after three years of existence. While some regard it as a ‘Ethereum killer,’ others refuse to acknowledge it at all. Aside from community opinions, its true potential can be calculated using numbers and on-chain metrics.

Having said that, could the altcoin be on the verge of a rally?

Who’s HODLing Cardano?

The answer isn’t whales or spot traders for the first time in a long time. Major whales (those with ADA worth more than $5 million) have been pulling out of the market since the beginning of July. Over 300 whale addresses have been removed from the equation of HODLers in the last 30 days.

Long-term HODLers have also been pushed out of the market.

 

Cardano Whales’ movement | Source: Santiment

A year ago, one-year HODLers dominated the market. Back in July 2020, this group of holders held a 46 percent share of the market. However, this figure has since decreased. It was only 9% in the previous month. Furthermore, with LTHs gone, a new breed of HODLer has emerged – The Cruisers.

Cardano Ownership by Time held | Source: Intotheblock 

Cruisers are long-term owners who currently hold a commanding 75% share of the market. Over 1.52 million addresses have held ADA for a period ranging from one month to a year. These addresses began to rise in January and have since accelerated significantly.

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In the last 6 months alone, Cruisers’ participation has gone up by 1.2 million from 350k. Furthermore, the average time ADA is being held in wallets rose to 6.1 months too, a sign of Cruisers’ current domination.

Cardano Cruisers (mid-term holders) rise | Source: Intotheblock 

Cardano’s profitability

Simply put, ADA appears to be pretty profitable right now. In the last 11 days, its price rose by 28.59% to trade at $1.3 at the time of this report. The Break-Even Price chart which shows the price the asset would need to reach for the address to break even underlined major profits at the time too.

Over 65.57% of total addresses, up to 1.38 million of them, are currently in profit. Adding to this bullish narrative is the average sentiment which has been fairly positive lately, when compared to the last 50 days.

Cardano Break-Even Price | Source: Intotheblock 

Overall, it is clear that recent rallies have received strong support from Cruisers (mid-term HODLers). If their dominance continues, ADA may see more stable price movement in the future.

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Because ADA is already profitable and the community sentiment is positive, more investors may join this particular group of holders. This would bring ADA closer to its ATH levels in April.

 

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