Cardano Loyalists Hold Strong: No Profit-Taking Even as Market Soars and ETF Hype Builds

While the crypto market rides a bullish wave and ETF speculation hits fever pitch, Cardano's long-term holders aren't budging. No sell-offs. No panic. Just diamond hands.

The HODLer's Gambit

ADA's faithful ignore tempting exit points—proving either unwavering conviction or a masterclass in stubbornness (Wall Street analysts are placing bets).

Market Euphoria? Not Here

While other chains see profit-taking spikes, Cardano's on-chain data shows eerie calm. Are these investors playing 4D chess—or just allergic to green candles?

One thing's clear: In a world where 'long-term' often means until next quarter's earnings call, ADA's community writes its own rules. Cynics whisper this is how bagholders are born—optimists call it the next Bitcoin-tier hold. Place your bets.

This consistency signals confidence in Cardano’s long-term growth and a willingness to hold through potential volatility.

Meanwhile, part of this cohort’s resilience may stem from ADA’s price still sitting 74.76% below its all-time high of $3.09, reached in September 2021.

The incentive to sell may not be compelling for many investors who bought during that cycle until the asset returns to those record levels. On the other hand, ADA short-term holders (STH) are exhibiting a surprisingly more cautious behavior in the current bullish market conditions.

Notably, this cohort quickly sold during 2021’s market rally but now applies far less selling pressure despite ADA’s 150% year-on-year gain.

Instead, Alphractal noted that they have modestly increased their positions in the digital asset.

Overheated market

Outside of these traders’ behaviour, on-chain indicators suggest ADA market conditions are hot and could give the asset another significant price run.

The adjusted Sharpe Ratio, a gauge of risk-adjusted returns, stands at roughly 1, reflecting the strong market performance compared to previous cycles.

Historically, ADA has seen sharp, parabolic rallies when this ratio approaches 2, making the current reading potentially supportive of further gains.

Aside from this indicator, a major bullish catalyst may be forming on the regulatory front.

Data from the decentralized prediction marketplace Polymarket gives Cardano an 80% chance of seeing a US-approved ETF this year. This places it among a small circle of altcoins with such significant odds.

If confirmed, an ETF could draw significant new demand from institutional and retail investors alike,e which could increase ADA’s value.