Cardano (ADA) price recovery is strong but may stop before reaching $0.38.
This is because profits are skyrocketing among ADA investors, which is encouraging investors to sell.
Cardano investors take care of themselves
As Cardano’s price begins to recover, It brought profits to the network. Investors have been waiting for this for a long time, and the July crash brought the price to a 9-month low. So, with the 8% increase in the last 24 hours, the profits have also increased.
In just 3 days, an additional 12% of ADA supply became profitable. This sudden turn to profitability could lead to a sell-off by investors looking to capture profits.
Read more: How to Buy Cardano (ADA) and All You Need to Know
Therefore, as more ADA holders are in a profitable position, the temptation to sell may increase. This could put downward pressure on the price of Cardano.which could disrupt the recent uptrend and introduce volatility into the markets.
The average holding period of traded ADA coins has already risen to 5 months. This long holding period suggests that even mid-term holders are selling now. When older coins move, it affects the price movement.
This is because these holders are known to be resilient, and their actions are a sign that confidence is weakening. As a result, the price of Cardano may lose the gains made in recent days.
Cardano trading coin holding time. Source: IntoTheBlockThe information contained on the Beincrypto website is posted for the purpose of providing good faith and information. The user is solely responsible for the use of the information contained on the website.
Additionally, some of the content is AI-translated articles from the English version of the non-crypto article.
2024-08-22 15:48:59