Loyal investors continue to accumulate ADA despite the market heating up.

The most loyal investors of Cardano are going against the usual take profit trend, persistently increasing their amount of ADA held even as prices and market heat indicators rise.

Data from Alpharactal shows that the long-term investor group (LTH) of ADA has continuously accumulated this asset since 2021 without any significant signs of distribution. This stability reflects a strong belief in the long-term growth potential of Cardano, as well as a willingness to hold through periods of volatility.

One reason for this persistence comes from the fact that the price of ADA is currently still 70% lower than the historical peak of 3.09 USD in September 2021. For many investors who bought in that cycle, the incentive to sell has not been strong enough until the price returns to this record level.

*Long-term holders of Cardano (Source: Alphractal)*In contrast, the short-term investor group (STH) of ADA is showing unexpectedly cautious behavior in the bullish market. While in 2021 they quickly took profit when the price surged, currently, despite a 150% increase year-on-year, this group is reducing selling pressure and even slightly increasing their holding positions.

Short-term Cardano holders (Source: Alphractal)## Hot market and breakout prospects

Aside from investor behavior, on-chain indicators show that the ADA market is in a “hot” state and may be preparing for a strong price increase.

The adjusted Sharpe ratio – a measure of return versus risk – is currently around 1, indicating that market performance is outperforming previous cycles. Historically, ADA has often seen parabolic price increases when this ratio approaches 2, raising expectations for the next uptrend.

*On-chain indicator Cardano ADA (Source: Alphractal)*In addition, a major stimulating factor may come from the legal aspect. Data from the decentralized prediction platform Polymarket shows that Cardano has an 80% chance of getting ETF approval in the US this year, placing ADA in the group of altcoins with such a high probability.

If the ETF is approved, ADA could attract significant demand from both institutional and individual investors, contributing to pushing the value of this currency higher.

Thạch Sanh