Cardano Drops 22% But Long-Term Holders Remain Bullish

Cardano, the eighth-largest cryptocurrency by market capitalization, has experienced a significant decline of 22% over the past week. As of the latest data, the price of Cardano stands at $0.73. This downturn mirrors the broader market trend, which has seen a general decrease in cryptocurrency values. Despite this decline, long-term holders (LTHs) of Cardano have shown remarkable resilience, choosing to hold onto their assets rather than selling.

On-chain data indicates a steady trend of HODLing among ADA’s LTHs, as evidenced by the rising Mean Coin Age. This metric, which tracks the average age of all coins in circulation, has increased by 1% since March 3. A rising Mean Coin Age suggests that investors are holding onto their coins, signaling accumulation and confidence in the asset’s long-term value. This trend reflects strong hands and hints at a potential bullish outlook for ADA, especially in light of recent broader market headwinds.

Moreover, ADA whales have increased their accumulation during the period under review, highlighting the surge in positive sentiment toward the altcoin. Large investors holding between 100,000 and 1,000,000 coins have collectively acquired 20 million ADA over the past week. When large investor holdings increase like this, it signals strong confidence among key holders. It reduces an asset’s available supply, creating upward price pressure.

On the daily chart, ADA’s Balance of Power (BoP) is positive at 0.30. This indicator compares the strength of buyers and sellers in the market. When its value is positive, buyers dominate the market, exerting stronger pressure than sellers. The bullish signal suggests upward momentum, which, if sustained, will lead to further ADA price appreciation. In this instance, the coin’s price could rally toward $0.94. If this resistance is flipped into a support floor, ADA’s price could jump to $1.16. However, if sellers regain dominance, the coin’s price could fall to $0.60.