The recent surge in the price of Cardano (ADA) has sparked a wave of optimism among investors, with many hoping to capitalize on the gains. However, on-chain data suggests that a significant portion of Cardano investors might be inclined to secure their profits rather than hold on to their positions. Despite the price gain of over 14% in the last seven days, Cardano has been labeled as one of the most underperforming coins since the beginning of the year, boasting a year-to-date loss of over 35%. This disparity in performance could lead investors to take a cautious approach and opt to secure their gains rather than risk further losses.
The recent transaction patterns among Cardano holders indicate a shift in sentiment towards the crypto token. Data from the market intelligence platform IntoTheBlock reveals that the average holding time of coins transacted in the last thirty days has been 5 months, suggesting that investors might be more inclined to sell their holdings rather than hodl. Furthermore, the number of addresses that could potentially offload their tokens if Cardano holders decide to secure profits is a cause for concern. With 481,370 ADA addresses having purchased the crypto token between the price range of $0.3 and $0.35, there is a looming possibility of a sell-off if the price surge is deemed unsustainable.
Crypto analyst Trend Rider has provided a roadmap for Cardano holders to navigate the uncertain market conditions. According to Trend Rider, the range between $0.22 and $0.31 serves as a liquidation zone where investors could consider adding to their positions. On the other hand, the main barrier zone for Cardano lies between $0.42 and $0.55, which presents an ideal opportunity for taking profits. Trend Rider also suggests that a break above $0.75 could signify a bullish reversal, with $0.75 being labeled as the “final boss resistance” level. Investors with a high conviction in Cardano might consider holding onto their positions if the price surpasses $0.75, potentially entering into bull market territory.
At the time of writing, ADA is trading at around $0.379, reflecting a nearly 4% increase in the last 24 hours. Despite the positive price momentum, the on-chain data and investor sentiment indicate a sense of caution among Cardano holders, with many opting to secure their profits rather than hold onto their positions. The market dynamics surrounding Cardano suggest a delicate balance between bullish optimism and profit-taking behavior, with investors weighing their options carefully in response to the recent price surge.
Overall, the current scenario surrounding Cardano’s price surge highlights the complex interplay between investor sentiment, on-chain data, and market dynamics. As investors navigate the volatile crypto market, it is essential to carefully analyze the factors influencing their decision-making process and adapt their investment strategies accordingly. With Cardano’s price trajectory remaining uncertain, investors must exercise caution and stay informed to make informed decisions in response to the evolving market conditions.
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