Cardano price crashes as long-term holders start losing faith in project


  • Cardano price had a massive 30% sell-off in the past four days.
  • The digital asset will most likely struggle to recover as long-term holders are selling.
  • ADA must hold above a crucial support level to avoid another fall.

Cardano, like the rest of the market, had a major sell-off and lost 30% of its value in the past week. According to on-chain metrics, long-time holders are exiting and taking profits. 

Cardano price on the verge of another significant fall

On the 4-hour chart, Cardano failed to stay above the 100 SMA and could quickly fall to the previous low of $1.07. One of the most significant bearish indicators for Cardano has been long-term holders exiting the network.

ada price

ADA/USD 4-hour chart

The number of investors holding ADA for one year or longer greatly diminished in the past year from 53.8% in April 2020 to a low of 12% currently. This metric indicates that long-term holders are taking profits and perhaps do not believe that Cardano price can continue climbing. 

In the same time period, the number of traders  holding ADA for no longer than one month exploded, especially since the beginning of 2021, which shows that Cardano is far more speculative now.

ada price

ADA Long-Term Holders

Fortunately, ADA bulls count with a lot of support on the way down. According to the In/Out of the Money Around Price (IOMAP) chart, the area between $1.24 and $1.27 where 98,000 addresses purchased 2.24 billion ADA represents a robust support point. 

ada price

ADA IOMAP chart

Additionally, the entire area between $1.27 and $1.12 is a significant support range. On the other hand, the most significant resistance area is located between $1.42 and $1.45. If Cardano can reconquer the 100 SMA, the digital asset could quickly jump toward the 50 SMA at $1.35 

Above this point, the next bullish price target would be $1.45, which is the strongest resistance point according to the IOMAP chart.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Chainlink Price Prediction: LINK prepares for a spike in profit-taking

Chainlink price has enjoyed an impressive bull rally over the past week that has seen it rise to new all-time highs. Now, a particular technical index shows that investors may be inclined to realized profits. 

More Chainlink News

Chiliz locks in new sport collaborations while CHZ price remains bounded

Chiliz price ranges and volume profile complement the bottoming pattern. Still, the extended right shoulder defeats the symmetry of the pattern, thereby lowering the probability of a successful breakout and reaching the measured move target.

More Chiliz News

Three reasons why the ‘other Ethereum’ has pumped 130% in the last week

Ethereum Classic (ETC) continues to maintain its parabolic price action advance that began in late March. Data from crypto market aggregator Coingecko shows ETC is up almost 50% in the last 24-hour trading period as of the time of writing.

More Ethereum News

XLM Price Prediction: Stellar eyes 10% rally to set up another swing high

 

XLM price shows extreme resilience as it tagged the demand zone extending from $0.474 to $0.503. A quick bounce from this level could set the stage for a subsequent swing high near $0.588.

 

More Stellar News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP