The price of Cardano’s ADA may experience a potential decline if long-term holders continue to keep their tokens out of circulation. Analysis of on-chain data revealed that the Mean Dollar Invested Age (MDIA) for Cardano has seen an increase, indicating a decrease in network activity, a trend that historically hinders price growth. Additionally, the Mean Coin Age (MCA) also suggests that a rise in the age of coins in circulation could signal a bearish trend for ADA.
Despite a short-term bullish momentum that pushed ADA’s price back to $0.49, indicators like the Relative Strength Index (RSI) show that buying momentum is not strong enough to sustain further gains. If the MDIA continues to rise, ADA may struggle to break past the psychological barrier of $0.50. However, if buying momentum increases, the token could potentially reach a price of $0.53. On the other hand, failure to break past key resistance levels could result in a correction leading ADA down to $0.45.
The technical analysis of ADA’s price action on 4-hour charts reveals mixed signals, with the potential for a bearish trend indicated by the crossing of the Exponential Moving Averages (EMA). If ADA manages to overcome resistance and close successfully above key levels, it could pave the way for a potential push towards $0.53. However, rejection at critical resistance levels could trigger a correction back towards the key support at $0.45. Ultimately, the behavior of long-term holders and key technical indicators will play a crucial role in determining the future price direction of Cardano’s ADA.
