Cardano Investors React To 14% ADA Price Surge To $0.37
August 23 2024 - 2:00PM
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On-chain data has provided insights into how Cardano (ADA)
investors will likely react to the crypto token’s recent price
surge. Cardano has been one of the leading gainers in the crypto
market in the last seven days, with a price gain of over 14% during
this period. Related Reading: Cardano Chang Upgrade Launch:
ADA Sees 52% Explosion In Major Metric Cardano Could Face
Significant Selling Pressure Cardano could face significant selling
pressure from investors who recently entered the money following
the crypto token’s price surge. Data from the on-chain analytics
platform Santiment shows that over an additional 12% of Cardano’s
supply is now in profits, which could pave the way for the holders
of these tokens to secure their profits, especially considering
Cardano’s unstable price action so far in this market cycle.
Despite its recent price gains, Cardano has been one of the most
underperforming coins since the start of the year and boasts a
year-to-date (YTD) loss of over 35%. As such, Cardano holders are
likely to be more compelled to secure their profits rather than
hold on to the belief that this recent price surge is a bullish
reversal rather than a relief bounce. The recent transaction
pattern among these Cardano holders also suggests that they are
losing confidence in the crypto token and are likely to secure
their profits as soon as possible. Data from the market
intelligence platform IntoTheBlock shows that the average holding
time of coins transacted in the last thirty days has been 5 months,
indicating that Cardano holders are paper-handing their
tokens. Meanwhile, further data from IntoTheBlock shows how
many addresses could offload their tokens if these Cardano holders
begin to secure profits. 481,370 ADA addresses bought the crypto
token between the price range of $0.3 and $0.35. This set of
investors could be the first to begin securing profits, considering
that they could easily fall out of the money if Cardano’s recent
price surge is simply a relief bounce. A Guide For ADA Investors
Crypto analyst Trend Rider recently provided a guide for Cardano
holders, which he stated they could use as a “master plan to stay
calm and tune out the noise.” This guide came in the form of a
chart that showed key levels holders should watch out for and use
in making a well-thought-out investment decision. The analyst
stated that the range between $0.22 and $0.31 is a liquidation
zone, which presents a strong buying area for those who want to add
to their positions. He further stated that the main barrier zone
for Cardano is between $0.42 and $0.55, noting that this area is
ideal for taking profits. He added that Cardano could enjoy a
quick rally to $0.75 if it breaks above this main barrier zone. The
analyst claimed $0.75 is the “final boss resistance, a prime spot
to take profits.”Those with greater conviction in Cardano might
want to hold the crypto token for much longer if it hits $0.75.
Trend Rider stated that a break above $0.75 means the crypto token
is entering bull market territory. At the time of writing,
ADA has been trading at around $0.379, which is up almost 4% in the
last 24 hours, according to data from CoinMarketCap. Related
Reading: Cardano Price Poised To Hit $2.88, Following Solana’s
Fractal: Crypto Analyst Cover image from Dall-E, chart from
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