Despite being buoyed by the overall recovery momentum in the cryptocurrency market, Cardano's price rally failed to sustain itself and ultimately fell short.

The bulls attempted to defend the price with a brief rise to $0.94, but this move was quickly met with a counterattack from the bears, resulting in a mild pullback and consolidation phase.

Price action suggests that while the bulls lack the strength to maintain momentum, Cardano's price remains above key support levels, maintaining a bullish structure despite the holiday dip.

On-chain data indicates that even after a significant rise in early December leading into a consolidation period, over 54% of ADA holders remain in profit.

ADA holders' resilience indicates their confidence in the long-term potential of the 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 withstand short-term market fluctuations.

Cardano has made significant strides in the DeFi and stablecoin space.

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

This reflects an increase in trust and activity within its DeFi ecosystem. One of the major driving factors behind this growth is the decentralized application (DApp) Liqwid on Cardano. This DApp's TVL surged by an astonishing 77.2%, highlighting the increasing popularity of the platform.

Cardano's stablecoin market also shows strong expansion momentum. The total market cap of stablecoins on the network rose by 5.4%, reaching $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 outpacing more established stablecoins. This highlights a vibrant and evolving stablecoin ecosystem.

Additionally, the founder of Cardano has laid out an ambitious vision for the platform's future. By 2025, his goal is to position Cardano as 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 the roadmap, along with innovations targeting scalability and interoperability.

Moreover, after a challenging year that saw its market cap ranking drop to 11th, Cardano made an astonishing comeback. In November, Cardano's price surged 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 ongoing progress within the ecosystem.

If ADA breaks above $1.25, a significant rebound is expected.

Cardano's price action has sparked optimism among analysts, laying the groundwork for expectations of a potential recovery and its next bullish trend.

Once the cryptocurrency successfully recovers the $1.25 level (marking a key resistance point), this rebound could commence. At the time of writing, ADA's price was $0.874, reflecting a drop for the day as it lost recent rebound gains.

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

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As Cardano approaches 2025, market participants will be closely monitoring whether ADA's price can break through key resistance levels and maintain upward momentum.

54.94% of Cardano addresses are currently in profit

On-chain metrics for 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 evolving ecosystem of Cardano and the confidence of its ADA holders.

Data also shows 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 evolve, such fundamentals could play a key role in supporting ADA's next upward move.

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 overbought conditions to a more neutral area.

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

Historically, negative MVRV ratios indicate undervaluation, providing an attractive entry point for long-term investors.

With ADA's consolidation, this metric suggests that now is a good time for those focused on sustained growth to reaccumulate. 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 moving forward.