Cardano’s The price recovery has caught everyone’s attention, but this process may stop before reaching $0.38. This is due to the profit growth data recorded among ADA investors, which seems to encourage investors to sell. When Cardano’s price started to recover, it brought profits to the network. Investors have been waiting for this for a long time because the July crash brought the price to a nine-month low.
What’s Happening on the Cardano Front?
With this process ISLAND Earnings also increased on the stock front, up 8% in the last 24 hours. An additional 12% of ADA supply became profitable in just three days. This sudden shift to profitability could lead to a sell-off as investors try to secure their gains. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Therefore, as more ADA holders find themselves in a profitable position, the temptation to sell could increase. This could potentially put downward pressure on Cardano’s price, disrupting the recent uptrend and injecting volatility into the market. The average holding period for traded ADA assets has already increased to five months. This longer holding period suggests that even medium-term holders are now selling.
When old tokens move, they affect the price action. This is because these holders are known for their resilience and their actions are a sign of waning confidence. As a result Cardano’s The price may lose the gains it has made in the last few days.
ADA Graphic Analysis
Cardano’s The price is holding below the $0.37 resistance and they are trying to turn it into a support base. In the past, the bounce from this level has led to gains for investors and the same could happen again. However, considering the factors mentioned above, Cardano may not be able to break through this resistance. As a result, the altcoin may consolidate by dropping to the $0.34 level.
On the other hand, a successful breach could take ADA to the $0.40 level. If this resistance is overcome, Cardano will test the $0.42 level as resistance, which would invalidate the bearish thesis. If the memecoin process that started on the Tron network recently comes to the Cardano ecosystem, the ADA price may welcome this process positively.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
