ADA Bulls Build Base Below $0.80 Amid Long-Term Holder Accumulation

Long-term ADA investors have shown little interest in selling as the price consolidates in a narrow trading range. Wallets holding ADA since 2021 continue to accumulate, with a significant share of the supply in four-year-old or older wallets and minimal profit-taking observed. The recent reclaim of the $0.80 level in July has provided some support as ADA remains below its December 2021 high near $1.21. This behavior suggests conviction among core holders, who appear to be building a base for future appreciation [2].

The Cardano community-governed treasury currently holds around 1.6 billion ADA. Discussions within the community have centered on how these funds should be allocated, with some advocating for diversification into Bitcoin to stabilize reserves. This potential pivot could shift the project’s focus from Web3 and gaming initiatives to balance sheet resilience. While governance mechanisms are still evolving, the treasury’s size and the gradual allocation strategy are likely to influence ADA’s risk profile over time [1].

Derivatives data indicates a cautious positioning in the market, with open interest near $631 million and 77% of positions being longs. A pressure zone exists between $0.81 and $0.82, where any significant price dip could trigger liquidations. Despite the high proportion of longs, leverage appears to be ebbing, and the overall derivatives activity remains subdued compared to other altcoins. This dynamic limits the chances of a sudden short squeeze but also suggests limited downside risk in the short term [1].

On-chain metrics show that DeFi total value locked (TVL) on Cardano is near $350 million, with approximately $37 million in stablecoin liquidity. While these figures are modest compared to leading blockchain platforms, they signal some level of on-chain activity and fee generation. The accumulation trend since 2021, paired with a renewed price uptick in the spring of 2025, suggests structural support for the asset beneath the current price level [1].

The overall market structure reflects a buildup phase, with higher lows observed since June 2023. Key support at the $0.70 level has held firm, reinforcing the psychological floor for buyers. Analysts note that this consolidation period could precede a range expansion if liquidity returns. Meanwhile, ADA’s 24-hour price decline of 5.6% to $0.775 contrasts with a 3.83% weekly gain, highlighting the mixed sentiment in the near term [1].

ADA’s behavior underscores the importance of long-term holder conviction in shaping its price action. While the asset remains below the $0.80 psychological level, the accumulation trend shows little sign of slowing. The next key test for bulls will be a sustained move above $0.83, a descending trendline that has been in place since late 2023. A successful breakout could set the stage for a move toward $1 and beyond, whereas a failure could result in a retest of the $0.70 support zone [1].

Source:

[1] Cardano Price Builds Toward $2 Target with Bulls Testing $0.83 Line https://www.ainvest.com/news/cardano-ada-builds-momentum-2-bulls-test-0-83-resistance-2508/

[2] Cardano Long-Term Holders Continue Accumulation Trend Since 2021 as Trading Activity Remains Muted https://thecurrencyanalytics.com/altcoins/cardano-long-term-holders-continue-accumulation-trend-since-2021-as-trading-activity-remains-muted-190267