Ethereum News Today: ADA Long-Term Holders Accumulate Despite 150% Year-on-Year Gain

Long-term holders of Cardano’s ADA are refusing to take profits despite a robust market rally and rising speculation around the potential approval of an exchange-traded fund (ETF). On-chain analytics from Alpharactal show that long-term holders (LTHs) have steadily accumulated ADA since 2021, with no significant signs of distribution [1]. This trend indicates a strong belief in Cardano’s long-term potential, even as prices remain 74.76% below the asset’s all-time high of $3.09 [1].

Short-term holders, in contrast, are exhibiting more cautious behavior, having previously sold during previous bullish cycles but showing less selling pressure despite ADA’s 150% year-on-year gain [1]. Alpharactal noted that these investors are modestly increasing their positions, suggesting that the current rally may be viewed as a consolidation phase rather than an exit signal [1].

The market environment for ADA also appears to be overheating. The adjusted Sharpe Ratio, a measure of risk-adjusted returns, currently stands at approximately 1. Historically, ADA has experienced parabolic rallies when this metric approaches 2, indicating that further gains could be on the horizon [1]. On-chain indicators such as the MVRV Z-Score and RVT ratio also suggest a relatively healthy market with accumulation trends in place [1].

Meanwhile, speculative interest in an ADA ETF has intensified. According to data from Polymarket, the chance of a US-approved ADA ETF this year has reached 80% [1]. If approved, the product could attract significant demand from both institutional and retail investors, potentially boosting ADA’s value. This speculation has also driven whale activity, with large investors purchasing substantial amounts of ADA in recent weeks [2].

The behavior of ADA holders stands in contrast to that of other major altcoins. For instance, Solana has seen whale addresses offloading large volumes amid rising decentralized exchange (DEX) volumes [3]. In contrast, ADA investors appear to be adopting a more patient and strategic approach, focusing on long-term price appreciation rather than short-term volatility.

Analysts suggest that the broader altcoin market may be entering a new growth phase, with Ethereum’s recent price action—breaking above key resistance levels—drawing institutional interest [5]. While Ethereum remains the focal point, increased optimism for well-positioned altcoins like Cardano could benefit ADA in the near term.

ADA’s price, however, has struggled to break above $0.80 recently, facing resistance from both technical levels and competition from meme tokens and other speculative assets [6]. Some analysts have projected a potential price target of $1.24, which would represent a 61% gain from current levels [7]. These forecasts, however, remain speculative and are not supported by confirmed on-chain activity or fundamental developments.

Institutional activity and on-chain metrics will be key in determining ADA’s next move. Investors are advised to monitor whale movements, exchange inflows, and broader market trends to assess opportunities and risks. The divergence in investor behavior between ADA and other altcoins highlights the complexity of the current market and underscores the value of a diversified approach to cryptocurrency investing [2].

Source: [1] Cardano ADA Holders Defy Market Volatility, Accumulate Long-Term (https://www.ainvest.com/news/ethereum-news-today-cardano-ada-holders-defy-market-volatility-accumulate-long-term-2508/)

[2] Cardano (ADA) Price Prediction: Whales Accumulate $157 Million as ETF Approval Odds Rise to 75% (https://coincentral.com/cardano-ada-price-prediction-whales-accumulate-157-million-as-etf-approval-odds-rise-to-75/)

[3] Analyst Predicts $270 Solana Price as DEX Volumes Soar Despite Whale Selling (https://coingape.com/markets/analyst-predicts-270-solana-price-as-dex-volumes-soar-despite-whale-selling/)

[5] Ethereum Price Breaks Toward $5000, Analyst Reveals (https://www.mitrade.com/au/insights/news/live-news/article-3-1029601-20250811)

[6] Cardano Price Forecast: ADA Hits Roadblocks As Meme Enthusiasts Flock to Layer Brett for $30,000 Rewards (https://www.barchart.com/story/news/34083579/cardano-price-forecast-ada-hits-roadblocks-as-meme-enthusiasts-flock-to-layer-brett-for-30-000-rewards)

[7] Cardano's $1.24 Price Target: Could This 61% Surge Make You Rich by 2025? (https://www.interactivecrypto.com/cardanos-124-price-target-could-this-61-surge-make-you-rich-by-2025)