Cardano has surged over 10%, breaking a key resistance level, and is now testing higher prices. On-chain data shows that long-term investors are taking profits despite the bullish trend. Profit to loss ratios of on-chain daily transactions have turned positive. Many investors may be capitalizing on the recent gains.
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As the market evolves, ADA strives for a positive trend. This is aided by a growing sense of optimism and heightened positivity about future price increases. This profit-taking indicates, however, that investors may be cautiously locking gains in, which could lead to short-term volatility.
Investors closely monitor the market with expectations of a strong rally over the coming weeks. ADA’s performance It is important to check if the momentum can be maintained. The next The next few days are crucial for Cardano to confirm if it can push higher and hold these levels.
Cardano Long-Term Holders Selling
Cardano tests local supply after a surge in demand, and investors are becoming more cautious with their short-term plans.
Yesterday, the ratio has decreased to daily on-chain transactions In profit-to-loss ratio, the ratio reached 1,53, which meant that for every ADA deal that ended in a loser, there have been 1.53 deals with profits. This ratio shows how many investors are taking the opportunity to profit from recent price increases, resulting in some long term holders selling coins at a gain.
Santiment’s data confirms this, with a modest decline in Cardano’s Mean Coin Age and Mean Dollar Invested Age The date of the 11th September is a national holiday. This metric tracks the long-term behavior of holders, reflecting their average age and amount invested in ADA over time. The drop in metrics indicates that holders of ADA who have purchased the coin at a lower price are taking their profits now, reducing the average age.
Despite these selling pressures, ADA can still maintain a bullish market momentum if the conditions of the markets continue to be pushed. Cardano might aim to increase its price, but the cautionary behavior of seasoned investors indicates that this rally may face some resistance.
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In the coming days, ADA will need to maintain its upward trend. It must hold above current levels. Cardano may reach new highs if demand and buyers take control.
ADA Price Action Details
ADA is trading at $0.3565, after having tested a major resistance level of $0.36. The 4-hour moving average of 200 exponentials (EMA) has been closed at $0.3490.
It is a strong indicator for short-term resistance that ADA has been observing since the beginning of August. The successful reclaimation of the 4H200 EMA is critical for the continuation of the upward trend.
If ADA is able to retest and hold this EMA as support, then it will confirm a bullish short-term trend. If ADA manages to break and hold above this level, it could push higher. Analysts and investors see the next Target is in the range of $0.38-$0.40.
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If ADA falls below this level of support, it could fall to lower zones for demand, perhaps to $0.33. The price would then fall to lower demand zones, possibly reverting back down to $0.33.
Chart from TradingView, Featured Image from Dall E
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Source: www.newsbtc.com