Cardano

bullish

<p>The crypto market is often subject to intense fluctuations, and Cardano (ADA) is no exception. Despite a significant drop in value, from $0.77 in March to $0.41 recently, an intriguing behavior is emerging among its investors. Instead of succumbing to panic, they seem to be adopting a long-term holding strategy, thereby reducing the selling pressure on the cryptocurrency. Let’s take a closer look at this fascinating phenomenon.</p>
<h2 id="h-a-notable-drop-but-cautious-optimism">A notable drop, but cautious optimism</h2>
<p>The ADA crypto has experienced a 48% drop in value since its peak in March 2024, an event that could have prompted many investors to liquidate their positions. However, on-chain data paints a different picture.</p>
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<p>The average age of coins, as well as the invested dollars, are on the rise, reaching 510 and 585 days respectively. <a href="https://www.cointribune.com/en/cardano-challenges-the-crypto-market-despite-the-collapse-of-its-tvl/" target="_blank" rel="noopener noreferrer nofollow">These indicators</a> suggest that investors prefer to hold onto their ADA, anticipating a future recovery rather than an immediate loss.</p>
<p>This trend of holding is reinforced by a significant increase in incoming flows from large holders, those owning more than 0.1% of the circulating supply.</p>
<p>An increase of 20,000% in these flows indicates renewed interest from institutional investors or crypto whales, a positive sign for market stability.</p>
<h3 id="h-a-retention-strategy-a-bullish-signal-for-the-ada-crypto">A retention strategy: a bullish signal for the ADA crypto?</h3>
<p>The choice to hold onto ADA is often seen as a sign of confidence in the future of the Cardano project. The increase in the average age of coins, in particular, indicates a decrease in the rapid circulation of tokens, thereby reducing selling pressure on the market.</p>
<p>Indeed, fewer sales equate to less volatility, a crucial element in a market often marked by abrupt movements.</p>
<p>However, it is important to note that this accumulation does not guarantee an immediate price increase.</p>
<p>Investors seem to be betting on a long-term vision, a prudent approach in an overall uncertain market context.</p>
<p>Nonetheless, this could set the stage for future appreciation, provided that technical developments and announcements related to Cardano continue to generate positive interest.</p>
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<h3 id="h-an-expected-drop">An expected drop?</h3>
<p>Despite <a href="https://app.santiment.net/charts/yN5eEFbv__sCl" target="_blank" rel="noopener noreferrer nofollow">this retention dynamic,</a> the short-term outlook for this crypto is not entirely rosy. Technical indicators, notably the MACD (Moving Average Convergence/Divergence), suggest a persistent bearish trend.</p>
<p>Currently, the MACD line is below its signal line, a configuration generally interpreted as a sign of short-term weakness.</p>
<p>If this trend continues, the price of Cardano could drop to $0.31, a level last observed in October 2023.</p>
<p>This perspective is not necessarily catastrophic, as it could represent a buying opportunity for those who believe in the long-term resilience of the asset.</p>
<p>In summary, Cardano’s current situation well illustrates the complexity of the crypto market. While on-chain data reveals a retention trend, technical indicators point to a possible short-term correction.</p>
<p>Investors seem to be favoring a long-term approach, a choice that could prove wise if the Cardano ecosystem continues to <a href="https://www.cointribune.com/en/crypto-the-intensive-preparation-of-cardano-for-the-chang-update/" target="_blank" rel="noopener noreferrer nofollow">develop and innovate. </a></p>

Crypto: Cardano (ADA) Withstands Pressure – Sales Slow Down!

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