Cardano's Stable User Base and Potential Bullish Reversal Spark Trader Interest

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Cardano's Stable User Base and Potential Bullish Reversal Spark Trader Interest

Analysis of the Cardano network by IntoTheBlock reveals that despite the difficulties in expanding its user base, the number of addresses holding a balance has shown consistency, hovering around 4.45 million for an extended period. Additionally, the network's transaction count and active user base have displayed stability since April, pointing to a dedicated and committed community supporting Cardano.

With Cardano settling a substantial daily on-chain volume of $7.2 billion and boasting a low Network Value to Transactions (NVT) ratio of just 2.62, there are suggestions that its native token might be undervalued compared to other networks. The notable presence of long-term holders, who possess nearly 40% of the total ADA supply, reflects a high level of confidence in the network's potential and resilience, especially in the face of competition from platforms like Solana and Base.

Notably, recent data from IntoTheBlock indicates a 2% increase in large transaction volume and a significant surge of 20% in daily active addresses. Transactions exceeding $100,000 have also seen a rise, from 288 to 337 transactions in the past 48 hours. Despite experiencing a 58% drop since its peak in March, Cardano has shown resilience and potential, with traders observing a bullish pennant formation and a hidden bullish divergence in the 3-day Relative Strength Index (RSI) that suggest the potential for a bullish reversal in the future.