Cardano (ADA) saw notable accumulation by bullish investors on Christmas Day. Though driven by recovery momentum in the broader crypto market, Cardano price rally could not sustain and ultimately fell short.

Starting the day at $0.93, ADA faced bearish pressure and dropped to $0.86 by press time.

Bulls attempted to defend the price with a brief surge to $0.94, but the move was swiftly countered by bears, leading to a mild pullback and a consolidation phase.

The price action suggests that while bulls lacked the strength to sustain momentum. Despite that, the Cardano price is holding above key support levels, preserving its bullish structure despite the holiday dip.

Over the past week, Cardano price has been one of the biggest underperformers among the top ten cryptocurrencies.

However, on-chain data reveals that over 54% of ADA holders remain in profit, even amid consolidation following its sharp rally earlier in December.

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The resilience of ADA holders signals a strong belief in the asset’s long-term potential. This optimism is likely fueled by Cardano’s robust fundamentals, as highlighted in Messari’s report.

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

Cardano Makes Major Strides in DeFi and Stablecoins

Cardano (ADA) has demonstrated notable progress, both in its price trajectory and ecosystem development.

In the ecosystem, significant advancements in its decentralized finance (DeFi) and stablecoin sectors have been made.

According to a recent report by blockchain analytics firm Messari, Cardano’s Total Value Locked (TVL) grew by an impressive 19% quarter-over-quarter, reaching $620 Million.

This reflects increased trust and heightened activity within its DeFi ecosystem.

Among the key contributors to this growth is Liqwid, a decentralized application (DApp) on Cardano. This DApp saw its TVL soar by a remarkable 77.2%, underscoring the platform’s growing adoption.

Cardano’s stablecoin market has also shown robust expansion. The total market cap of stablecoins on the network rose by 5.4% to $20.7 Million, with newer entrants like USDM from USDM Official leading the charge.

As seen in the post, the USDM’s market cap skyrocketed by 145.5%, significantly outpacing more established stablecoins. This highlights a dynamic and evolving stablecoin ecosystem.

Moreover, Charles Hoskinson, Cardano’s founder, has laid out an ambitious vision for the platform’s future. By 2025, he aims for Cardano to become a leader in community-driven on-chain governance, supported by a dynamic constitution that empowers its users.

The network’s transformation into a fully decentralized autonomous organization (DAO) is part of this roadmap, alongside innovations targeting scalability and interoperability.

These efforts aim to position Cardano as a bridge between traditional finance and blockchain technology.

Additionally, after a challenging year that saw its market cap ranking drop to 11th, Cardano staged a remarkable comeback. In November, Cardano price surged approximately 280%, reclaiming its position as the 9th largest cryptocurrency by market cap.

This resurgence signals renewed confidence in the network’s potential and ongoing ecosystem advancements.

Analyst: If ADA Crosses $1.25, a Big Rally Will Follow

Cardano’s price action has sparked optimism among analysts, with expectations of a potential recovery setting the stage for its next bullish move.

According to a tweet from Flash, a notable Bitcoin and crypto trader, Cardano price is on the cusp of entering a full-fledged bull market.

Flash predicts this rally could begin once the cryptocurrency successfully reclaims the $1.25 level, marking a critical resistance point.

However, at the time of writing, ADA price was trading at $0.86, reflecting a decline for the day as it lost gains from its recent rebound.

Despite the pullback, the outlook remains cautiously optimistic, with the recovery above $1 being viewed as a short-term milestone for reigniting bullish momentum.

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

54.94% of Cardano Addresses Now in Profit

Cardano’s (ADA) on-chain metrics add weight to its bullish outlook, with recent data revealing that 54.94% of ADA addresses are currently in profit.

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

This profitability metric highlights Cardano’s growing ecosystem and the confidence of its ADA holders.

The data also suggests that a significant portion of ADA investors are long-term participants. These are forming a solid base that will remain steady even during periods of price consolidation or minor market corrections.

Such a foundation could play a crucial role in supporting ADA’s next upward move as market conditions evolve.

MVRV Shows Undervaluation Status

Cardano’s 30-day Market Value to Realized Value (MVRV) ratio offers key insights into its current market dynamics. The metric, now at -12.44%, reflects a transition from overbought conditions to more neutral territory.

This adjustment indicates that short-term traders have largely taken profits. This further paves the way for a healthier consolidation phase and mitigates the risk of steep corrections.

Historically, negative MVRV ratios have signaled undervaluation, presenting attractive entry points for long-term investors.

As ADA consolidates, this metric suggests the time is ripe for renewed accumulation by those with a focus on sustained growth. While short-term signals advocate for caution, Cardano’s long-term prospects remain optimistic.

Additionally, Robust on-chain activity, combined with steady investor confidence, underpins a bullish trajectory for the asset moving forward.