In the last seven days, Cardano (ADA) has seen a significant price gain of over 14%, making it one of the leading gainers in the crypto market. However, on-chain data indicates that investors may react differently to this surge. While over an additional 12% of Cardano’s supply is now in profits, some investors may feel compelled to secure their profits, especially considering the token’s unstable price action in this market cycle.
Losses Since the Start of the Year
Despite the recent price gains, Cardano has been underperforming since the beginning of the year, with a year-to-date loss of over 35%. This could lead holders to prioritize securing profits over holding onto the belief that the recent surge is a bullish reversal rather than a relief bounce.
Lack of Confidence Among Holders
Recent transaction patterns among Cardano holders indicate a lack of confidence in the crypto token. The average holding time of coins transacted in the last thirty days has been 5 months, suggesting that holders are quick to sell their tokens. This lack of confidence may result in holders securing profits sooner rather than later.
Data from market intelligence platform IntoTheBlock shows that 481,370 ADA addresses bought the token between the price range of $0.3 and $0.35. These investors could be the first to secure profits, especially if Cardano’s recent price surge is merely a relief bounce. The potential selling pressure from these addresses could impact Cardano’s price in the near future.
Crypto analyst Trend Rider has provided a guide for Cardano holders to navigate the current market conditions. He suggests key levels to watch out for, including a liquidation zone between $0.22 and $0.31 for adding to positions and a barrier zone between $0.42 and $0.55 for taking profits. Trend Rider also highlights $0.75 as a crucial level, which could lead to a quick rally if broken above.
The Path Ahead for Cardano
As Cardano continues to trade around $0.379 at the time of writing, investors are closely monitoring key levels and potential price movements. A break above $0.75 could signal a shift into bull market territory, while failure to do so may result in further selling pressure from holders looking to secure profits.
Overall, the future of Cardano’s price action remains uncertain, with investors reacting to recent price surges in different ways. It is essential for holders to stay informed and make well-thought-out investment decisions based on the current market conditions and key levels to watch out for.