Cardano (ADA) has experienced a significant surge in price over the last seven days, with gains of over 14%. However, on-chain data indicates that investors may be preparing to offload their holdings to secure profits. Santiment data reveals that an additional 12% of Cardano’s supply is now in profits, signaling a potential influx of selling pressure from holders who entered the market during the recent price surge.
Despite the recent price rally, Cardano has been underperforming since the beginning of the year, with a year-to-date loss of over 35%. This lackluster performance may lead holders to prioritize profit-taking over hodling, especially given the coin’s volatile price action. Data from IntoTheBlock suggests that holders have an average holding period of 5 months, indicating a trend of short-term holding and quick profit realization.
Crypto analyst Trend Rider has highlighted key levels that Cardano holders should monitor to make informed investment decisions. According to the analysis, the price range between $0.22 and $0.31 is seen as a buying opportunity, while the zone from $0.42 to $0.55 is considered ideal for taking profits. Breaking above $0.55 could pave the way for a rally to $0.75, which is deemed as a critical resistance level.
As ADA currently trades at around $0.379, up almost 4% in the last 24 hours, the impending sell-off by holders who have recently entered the market could impact the coin’s price dynamics. Investors with a long-term view may choose to hold on to their holdings if ADA reaches $0.75, signaling a potential shift into bull market territory. However, the current market sentiment and behavior indicate a wave of profit-taking activities that could lead to price corrections in the short term.
The on-chain data and investor behavior surrounding Cardano suggest that a major sell-off may be on the horizon as holders look to secure profits in the face of recent price gains. While strategic analysis and guidance from experts like Trend Rider can provide valuable insights for investors, the market remains unpredictable and subject to sudden shifts. As ADA continues to navigate through volatile price movements, investors must remain vigilant and adaptive to emerging trends to make informed decisions in the ever-evolving crypto landscape.
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