The long-term prospects for the ADA are good, but they need support from the whales

With coin memes like Shiba Inu earning a quarterly ROI of 926.07%, legitimate projects like Cardano are forgotten. The price movement of ADA is rather gloomy and therefore seems to have lost its attractiveness. But it’s not just the newer projects that seem to have stolen the ADA’s spotlight.

In fact, speaking of ROI, even Bitcoin is more profitable than Cardano at the time of this writing. If the number 5 seems to have lost its place in the market, is it really time to reevaluate Cardano’s place in your portfolio?

Well the answer is yes if you want to make short or medium term profits. However, when you’re in the game for the long term, it seems like Cardano is still worth it. But how can altcoins reverse when ADA looks pretty boring on the lower and higher time frames?

Independent orbit

Unlike many other altcoins that followed in BTC’s footsteps in a bull run, smart contract platforms like Cardano and Solana have seen fairly independent market developments. In particular, Cardano’s run was seen as consolidated.

When Bitcoin hovered above $ 60,000 in the past few weeks and hit its ATH, ADA’s development was completely opposite. Notably, at the time of this writing, ADA’s correlation with BTC has been at an all-time low since August 2019.

Source: IntoTheBlock

Therefore, ADA decoupling is often seen as an advantage by the market, but not in practice. It’s worth noting that whenever the relative correlation is higher, ADA sees larger ATHs and returns, so it doesn’t look like this divergence trend is going well for ADA.

HODLer has to get back into the game

ADA ownership statistics show that retail volume is 73.36% while whales are only 9.82% and investor volume is 16.82% at the time of going to press.

Source: IntoTheBlock

In addition, the weighted average length of the whale populations has also decreased since 2020. This underscores the lack of HODL trust that may have been impacting the price of ADA recently.

In terms of development, however, the project is quite active with over 3,260 GitHub commits in the past week, more than most other cryptocurrencies, indicating the developer’s commitment to the project.

In addition, Cardano consumes 0.01% more energy than Bitcoin, making it one of the greenest blockchains. All in all, while the long-term outlook for ADA looks promising, it needs strong whale support and some stronger HODL beliefs in the short term.

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Annie

According to Ambcrypto

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