As Cardano (ADA) experiences a significant price surge in the last seven days, investors are closely watching the on-chain data to determine how they will react to these developments. It is crucial to note that while Cardano has shown gains of over 14% in this period, there may be looming selling pressure from investors who have recently entered the market at higher price points. This additional pressure could be exacerbated by the fact that over 12% of Cardano’s supply is now in profits, prompting holders to consider securing their gains.
Despite the recent price gains, Cardano has been underperforming in the crypto market since the beginning of the year, with a year-to-date (YTD) loss exceeding 35%. This substantial loss could drive Cardano holders to prioritize profit-taking over potential further price increases. The market’s current cycle of unstable price action may also contribute to investor uncertainty regarding the sustainability of Cardano’s recent surge.
Recent transaction patterns among Cardano holders reveal a growing lack of confidence in the crypto token, leading many to consider securing their profits promptly. Data from market intelligence platforms indicates that the average holding time for coins transacted in the last thirty days has been 5 months, signaling a trend of paper-handing among Cardano holders. Additionally, the presence of over 481,370 ADA addresses that purchased tokens within the price range of $0.3 and $0.35 suggests a potential mass profit-taking scenario.
In light of these developments, crypto analyst Trend Rider has offered a strategic guide for Cardano holders to navigate the current market conditions. According to his analysis, the range between $0.22 and $0.31 represents a liquidation zone where investors may consider adding to their positions. He also highlights the importance of monitoring key levels, particularly the barrier zone between $0.42 and $0.55, as an ideal area for profit-taking. Trend Rider further suggests that a breakthrough above $0.75 could signal a bullish trend, prompting holders to reassess their long-term strategies.
As of the time of writing, ADA is trading at approximately $0.379, reflecting a modest 4% increase in the last 24 hours. While Cardano’s recent price surge has garnered attention from investors, the looming pressure to secure profits may influence its future trajectory. It remains to be seen how Cardano holders will respond to these market dynamics and whether the crypto token can sustain its current momentum amidst the broader fluctuations in the crypto market.
