Cardano (ADA) has seen a significant price surge in the last seven days, gaining over 14% during this period. However, despite these gains, on-chain data suggests that investors may be preparing to sell off their holdings. The recent price surge has led to over 12% of Cardano’s supply being in profits, indicating that investors who entered the market recently may be looking to secure their gains. This behavior is understandable given Cardano’s volatile price history in this market cycle.
Lackluster Performance Year-to-Date
Despite the recent price gains, Cardano has been one of the most underperforming coins since the beginning of the year, with a year-to-date loss of over 35%. This poor performance may lead holders to prioritize profit-taking over holding onto their tokens in the hopes of a bullish reversal. The data suggests that Cardano holders are becoming increasingly skeptical of the crypto token’s future prospects, leading them to potentially offload their holdings.
Loss of Confidence Amongst Holders
The recent transaction patterns among Cardano holders indicate a loss of confidence in the crypto token. Data shows that the average holding time for coins transacted in the last thirty days has been 5 months, suggesting that holders may be quick to sell their tokens. Additionally, a significant number of addresses bought Cardano within a specific price range, indicating that these investors may be the first to secure profits if the recent price surge is short-lived.
Crypto analyst Trend Rider has provided a guide for Cardano holders to navigate the current market conditions. The guide includes key levels to watch out for, such as the liquidation zone between $0.22 and $0.31, which presents a buying opportunity, and the main barrier zone between $0.42 and $0.55, ideal for taking profits. Trend Rider also suggests that Cardano could rally to $0.75 if it breaks above the main barrier zone, with $0.75 being a crucial level for profit-taking. Holding above $0.75 could indicate a shift into bull market territory.
At the time of writing, ADA is trading at around $0.379, up almost 4% in the last 24 hours. This current price level suggests that investors are closely monitoring the market and making decisions based on the guidance provided by analysts like Trend Rider. However, the price action in the coming days will determine whether Cardano holders continue to secure profits or if they choose to hold onto their tokens for long-term gains.
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