Despite being boosted by the overall recovery momentum in the cryptocurrency market, Cardano’s price rally failed to sustain and ultimately fell short of expectations.

The bulls attempted to defend the price with a brief rally to $0.94 but the move was quickly countered by the bears, resulting in a mild correction and a consolidation phase.

The price action shows that although the bulls lack the strength to sustain the momentum. Nevertheless, Cardano price remains above the key support levels, maintaining the bullish structure despite the holiday dip.

On-chain data shows that even after entering a consolidation period after a sharp rise in early December, more than 54% of ADA holders remain profitable.

The resilience of ADA holders indicates their confidence in the long-term potential of this asset, a sentiment likely driven by Cardano's strong fundamentals.

This underscores the growing strength of DeFi and stablecoins within its ecosystem. Investors seem confident in ADA's ability to weather short-term market fluctuations.

Cardano has made significant strides in DeFi and stablecoins.

According to a recent report by blockchain analytics firm Messari, Cardano's total value locked (TVL) increased by 19% month-over-month, reaching $620 million.

This reflects increased trust and activity within its DeFi ecosystem. One of the main drivers of this growth is the decentralized application (DApp) Liqwid on Cardano. This DApp's TVL soared by an astonishing 77.2%, highlighting the platform's rising adoption.

Cardano's stablecoin market is also showing strong expansion momentum. The total market cap of stablecoins on the network rose by 5.4% to $20.7 million, with new entrants like USDM Official leading the way.

As seen in the article, the market cap of USDM surged by 145.5%, far surpassing more established stablecoins. This highlights a vibrant and evolving stablecoin ecosystem.

Moreover, the founder of Cardano has laid out an ambitious vision for the platform's future. By 2025, his goal is to make Cardano a leader in community-driven on-chain governance, supported by a dynamic constitution that empowers users.

The network's transition to a fully decentralized autonomous organization (DAO) is part of this roadmap, along with innovations aimed at scalability and interoperability.

Additionally, after a tough year and a drop to 11th place in market capitalization, Cardano made an impressive comeback. In November, the price of Cardano soared by about 280%, reclaiming its position as the 9th largest cryptocurrency by market cap.

This recovery indicates renewed confidence in the network's potential and the ongoing progress of its ecosystem.

If ADA breaks through $1.25, a significant rebound is likely.

Cardano's trends have sparked optimism among analysts, with expectations for a potential recovery laying the groundwork for its next bullish movement.

Once the cryptocurrency successfully recovers the $1.25 level (marking a key resistance point), this rebound could begin. At the time of writing, the ADA price is $0.874, reflecting a decline on the day as it lost the gains from a recent rebound.

Despite some pullback, the outlook remains cautiously optimistic, with a breakout above $1 seen as a short-term milestone to reignite bullish momentum.

Tweet | Source: x


As Cardano approaches 2025, market participants will closely watch whether the ADA price can break through key resistance levels and maintain upward momentum.

54.94% of Cardano addresses are now in profit.

The on-chain metrics of Cardano (ADA) add weight to its bullish outlook, with the latest data showing that 54.94% of ADA addresses are currently in profit.

Analytics firm IntoTheBlock reports that approximately 2.42 million addresses are in profit at current price levels.

This profitability metric highlights the continuously evolving ecosystem of Cardano and the confidence of its ADA holders.

Data also suggests that a significant portion of ADA investors are long-term participants. These investors form a solid foundation that will remain stable even during price consolidations or slight market adjustments.

As market conditions change, such fundamentals may play a key role in supporting ADA's next upward movement.

MVRV indicates undervaluation.

Cardano's 30-day Market Value to Realized Value (MVRV) ratio provides important insights into its current market dynamics. This metric currently stands at -12.44%, reflecting a shift from an overbought state to a more neutral zone.

This adjustment indicates that short-term traders have largely taken profits. This paves the way for a healthier consolidation phase and reduces the risk of a significant pullback.

Historically, a negative MVRV ratio indicates undervaluation, providing an attractive entry point for long-term investors.

With the integration of ADA, this metric suggests that for those focused on sustained growth, now is a good time to reaccumulate funds. While short-term signals advocate caution, Cardano's long-term outlook remains optimistic.

Strong on-chain activity combined with stable investor confidence supports the asset's bullish trajectory in the future.