Can the ADA Coin Price Remain Strong Above $1?
Cardano’s value has dropped by double digits over the past week. It is currently trading at $1.04, with the price down 11% during this period.
In addition to a general decline in trading activity in the broader cryptocurrency market, the ADA coin price decline has been attributed to a significant reduction in holding times and a surge in selling activity by large investors or whales.
Cardano holding times drop as large holders scale back
BeInCrypto’s analysis of Cardano’s on-chain activity shows a sharp decline in the holding time of trading tokens over the past week. According to IntoTheBlock, the metric fell 48% during the review period.
An asset’s holding time measures the average duration its tokens are held in a wallet before being sold or transferred. When this indicator declines, it indicates increased selling pressure from market participants.
This usually indicates weakening confidence or a shift in market sentiment toward the asset. Therefore, the drop ADA hold time Investor dissatisfaction leaves it at risk of wider price declines in the short term.
farther, ADA whales have significant Their accumulation of tokens decreased during the week under review, as evidenced by the 134% drop in net flows recorded by large holders during that time.
Large holders are addresses that hold more than 0.1% of the asset’s circulating supply. Their net flow measures the difference between the tokens they bought and sold during a specific period.
A decline in net flows from large asset holders indicates that major investors or whales are reducing inflows from their holdings, indicating less accumulation and selling activity. This reflects a cautious stance or bearish sentiment among influential market participants, which may affect the price stability of the asset.
ADA Price Prediction: Bears are in control
The Balance of Power (BoP) on ADA’s daily chart confirms this bearish outlook. As of this writing, the indicator stands at -0.34. The BoP measure measures the strength of buying and selling pressure in the market, helping to identify trends and potential reversals.
BoP values below 0 indicate sellers dominate the market, indicating bearish sentiment and potential downward price movement. If bearish sentiment increases, The price of ADA may drop Below the $1 mark, it is trading at $0.92.
On the other hand, if momentum turns bullish, ADA Coin Price May Breakout It broke resistance at $1.07 and regained a two-year high of $1.32.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
