Cardano (ADA) has seen a significant price gain of over 14% in the last seven days, making it one of the leading gainers in the crypto market. However, on-chain data suggests that investors who recently entered the market during this price surge may face significant selling pressure. According to the on-chain analytics platform Santiment, over an additional 12% of Cardano’s supply is now in profits, leading holders to consider securing their gains.
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 performance may prompt holders to prioritize profit-taking over long-term investment strategies. The recent transaction pattern among Cardano holders also indicates a lack of confidence in the token, with holders opting to secure their profits quickly. Data from IntoTheBlock shows that the average holding time for Cardano coins transacted in the last thirty days has been 5 months, suggesting a trend of paper-handing among investors.
Crypto analyst Trend Rider has provided a guide for Cardano holders to navigate the current market conditions. According to the analyst, the range between $0.22 and $0.31 is a liquidation zone, offering a buying opportunity for those looking to increase their positions. He also identifies the main barrier zone for Cardano between $0.42 and $0.55 as an area ideal for taking profits. If Cardano breaks above this zone, Trend Rider suggests that a rally to $0.75 could be possible, marking a critical resistance level for profit-taking.
For investors with strong conviction in Cardano, holding onto the token beyond $0.75 may be a strategic move. Trend Rider indicates that breaking above $0.75 could signify Cardano entering bull market territory. This long-term outlook is contingent on the token’s ability to sustain momentum and break through key resistance levels. As of the latest data from CoinMarketCap, ADA is trading at around $0.379, reflecting a 4% increase in the last 24 hours.
On-chain data provides valuable insights into investor behavior and market dynamics for Cardano. The recent price surge has presented both opportunities and challenges for holders, prompting them to reassess their investment strategies and consider profit-taking. As the market continues to evolve, investors will need to stay informed and adapt their approach to navigate the volatility of the cryptocurrency space.
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