Cardano (ADA) Whales Securing Gains After 10% Upswing: What’s Next?
14 Settembre 2024 - 12:00AM
NEWSBTC
Cardano has surged over 10%, breaking a key resistance level,
and is now testing higher prices. Despite the bullish momentum,
on-chain data reveals that long-term holders are beginning to take
profits. The ratio of daily on-chain transactions in profit to loss
has turned positive, suggesting that many investors are
capitalizing on recent gains. Related Reading: Injective (INJ)
Breaks $18 Resistance: Investors Expect Higher Prices As the market
continues to evolve, ADA strives to maintain its uptrend, buoyed by
positive sentiment and growing optimism for further price recovery.
However, this profit-taking activity indicates that some investors
are cautiously locking in gains, potentially leading to short-term
price volatility. With high expectations for a continued rally in
the coming weeks, investors are closely watching ADA’s performance
to see if it can sustain its momentum. The next few days will be
critical for confirming whether Cardano can hold above these levels
and push toward new highs. Cardano Long-Term Holders Selling
Cardano is testing local supply levels after a significant surge,
with investors becoming cautious in their short-term
strategies. Yesterday, the ratio of daily on-chain
transactions in profit to loss reached 1.53, meaning that for every
ADA transaction resulting in a loss, 1.53 transactions have
generated profits. This metric highlights that many investors are
taking advantage of the recent price gains, leading to some
long-term holders selling their coins for profit. Data from
Santiment supports this view, showing a slight decline in Cardano’s
Mean Coin Age and Mean Dollar Invested Age on September 11. These
metrics track long-term holders’ behavior, reflecting the average
age of ADA coins and the amount invested over time. A drop in these
metrics suggests that holders who purchased ADA at lower prices are
now taking profits, decreasing the average age of the coins in
their possession. Despite this selling pressure, ADA still has the
potential to maintain its bullish momentum if market conditions
continue to push. Cardano could target higher prices, but the
cautious behavior from seasoned investors signals that the rally
might face resistance soon. Related Reading: Is Chainlink (LINK)
$12 Breakout Imminent? Data Reveals A Rising Open Interest The
coming days will be crucial for ADA, as it needs to hold above its
current levels to confirm a continued uptrend. If buyers regain
control and demand increases, Cardano could break through key
resistance levels and aim for new highs. ADA Price Action
Details ADA trades at $0.3565 after testing a key resistance at
$0.36. The price has closed above the 4-hour 200 exponential moving
average (EMA) at $0.3490. This is a significant indicator of
short-term strength that ADA had respected as resistance since
early August. This successful reclaim of the 4H 200 EMA is crucial
for maintaining the uptrend. If ADA manages to retest this EMA and
hold it as support, it would confirm a short-term bullish trend.
Breaking and holding above this level suggests that ADA could
continue to push upward. Investors and analysts see the next target
as being in the $0.38 to $0.40 range. Related Reading: Cardano
(ADA) Rally Brewing? On-Chain Metrics Suggest Investors Optimism
However, if ADA loses this support level, the price could drop to
lower demand zones, possibly retreating to around $0.33. This would
signal a weakening current momentum and potentially spark further
selling pressure. Featured image from Dall-E, chart from
TradingView
Grafico Azioni Cardano (COIN:ADAUSD)
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Da Nov 2024 a Dic 2024
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