Cardano price target at $1 as long-term holders return ADA

Cardano (ADA) has been struggling with price volatility for the past month, preventing the altcoin from finding strong support at the $1.00 mark.

Broader market signals remain neutral to bearish, limiting upside momentum. However, ADA's long-term owners (LTHs) are providing critical support, preventing significant price cuts.

Cardano has strong support.

Cardano's DAA (Daily Active Addresses) divergence indicator has been flashing a series of sell signals for the past several days. This trend is accompanied by declining participation among investors, coupled with the absence of meaningful price growth, which has weakened bullishness in the market.

Investors seem cautious as current market conditions have dampened optimism. Uncertainty surrounding ADA's development direction has created a wait-and-see approach, with limited purchasing activity seen among retail and institutional participants.

On a macro level, Cardano's MVRV (market value to realized value) long/short differential is positive at 45 percent. This indicates that long-term owners are sitting on high profits. These investors, known for their stability, are less likely to sell during periods of volatility, providing stability to ADA prices.

In Cardano's case, these LTHs play a critical role in mitigating the impact of potential sales. Their continued support will prevent a major downturn, bolstering confidence that ADA prices will recover in the near term if broader market conditions improve.

ADA Price Forecast: Future Consolidation

Cardano currently trades below $1.00, with its price up to $0.91 as of this writing. Finding $1.00 as support remains a key goal, but will require the aforementioned bearish signs and limited market participation.

If broad market conditions remain unchanged, ADA may continue to strengthen in the $0.85 to $1.00 range. This price band has historically served as a buffer zone for Cardano, allowing investors to regroup in times of uncertainty.

However, if bullish momentum returns to the market, Cardano may breach the $1.00 resistance level. Finding $1.00 as strong support invalidates the bearish-neutral outlook and sets up a possible rally toward $1.23, indicating renewed investor optimism in ADA's long-term growth.