There are three theories why Cardano is on this price trajectory.

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Increasing trading volume on spot and futures markets has aided Cardano’s continuing price surge in recent weeks and months. At the time of writing, the altcoin was priced at $2.32, with the currency rising 20% in 24 hours to reach one ATH after another. The previously reported price and trade volume increases were accompanied by a rise in market capitalisation.

Cardano is now ranked third among the top ten altcoins in the industry, according to CoinMarketCap numbers.

 

Furthermore, according to the attached table, there is actually more ADA staked than in the previous 30 days. In reality, it is approaching half a million. With 100 percent of its HODLers profitable at the press time price stage, ADA’s rally is likely to last a long time, particularly because the altcoin’s staking rewards data supports this inference. With a comparatively high percentage of ADA staked, a direct association between staked ADA and ADA price has arisen.

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Though on-chain sentiment is currently marginally negative, nett network growth is optimistic at 5%. Furthermore, while there has been a gradual decline in big sales, this may indicate that more retail traders are purchasing ADA as opposed to HODLers and banks. Until trading rate falls and there are cascading sell-offs, the price is expected to remain at its current pace.

In the case of Cardano, the concentration by major HODLers has stayed largely below 30%, which is critical to the currency’s continuing rally. Big traders have a heavy concentration of top memecoins and altcoins that are rallying, such as DOGE, LINK, BNB, and ETH, among others. This is critical for keeping the price at its current levels.

Over the last week, major purchases totalling $80 billion have occurred, and inflows are expected to rise ever more. Despite YTD gains of over 500%, less than 15% of HODLers have owned ADA for more than a year. Furthermore, the number of ADA HODLers is lower than expected. As a result, the short-term ROI could be the primary explanation for the short HODLing time.

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According to Messari numbers, the ROI over the last week was nearly 40%.

Why Cardano's price rally is a long one

ADA short-term ROI || Source: Messari

The ROI was over 700 percent in the previous year. After many dips, this is a moderately high gain for HODLers.

The new trends in ADA, as well as the rising demand in the second phase of the altseason, make it one of the hottest altcoins to buy and hold. In reality, one might argue that ADA is still undervalued at the time of writing.

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