[ad_1]
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 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
Cover image from Dall-E, chart from Tradingview
[ad_2]
Source link
