Cardano's (CRYPTO: ADA) stable user base has prompted some traders to consider the altcoin as undervalued and due for a potential bullish reversal.

What Happened: An IntoTheBlock analysis of the Cardano network shows that despite challenges in attracting new users, the number of addresses with a balance has remained steady at around 4.45 million for over a year.

The network's transaction count and active user base have also remained stable since April, indicating a committed community. Cardano settles around $7.2 billion daily in on-chain volume, surpassing many other networks for a low Network Value to Transactions (NVT) ratio of just 2.62. This suggests that Cardano's native token may be undervalued.

Cardano's stable user base and transaction count demonstrates the network's resilience in light of competition from Solana and Base. The high percentage of ADA held by long-term holders, nearly 40% of the supply, indicates their high level of confidence.

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Why It Matters: IntoTheBlock data also shows a 2% increase in large transaction volume, while daily active addresses surged by 20%. Transactions greater than $100,000 increased from 288 to 337 transactions over the past 48 hours.

Cardano is up 17% over the past year, trading at a valuation of $12.3 billion.

Crypto trader Bitcoinsensus noted that while Cardano has dropped more than 58% since its peak on March 13, it is still forming a bullish pennant, signaling the potential for a reversal.

The trader added that the 3-day RSI shows a hidden bullish divergence between recent price lows, and ADA remains within the trading range established since May 2022.

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