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Key Takeaways:
- Long-term holders are accumulating again, boosting confidence.
- Neutral MVRV readings suggest limited profit-taking pressure.
- $0.60 remains the critical level for confirming a bullish breakout.
Cardano (ADA) is showing early signs of a bullish recovery, supported by the actions of both long-term and short-term holders. After suffering from negative momentum earlier this year, the cryptocurrency has posted a 12% gain, bringing its price to a critical resistance level at $0.60. The recent change in holder behavior could set the stage for a sustainable rebound.
Long-Term Holders Return to HODLing
Data from Santiment reveals that Cardano‘s Mean Coin Age (MCA) is increasing, a strong indication that long-term holders (LTHs) have shifted from a selling phase back into accumulation. This trend is significant because LTHs control a substantial share of ADA’s circulating supply. Their renewed conviction reduces downward price pressure, helping stabilize the market.
The return of LTHs to a HODLing stance is a bullish signal, often preceding extended rallies. It also points to growing confidence in Cardano’s long-term prospects, reinforcing support at current levels.
Neutral MVRV Suggests Minimal Sell Pressure
Another key metric, the MVRV Long/Short Difference, currently sits in a neutral zone. This implies that neither long-term nor short-term holders (STHs) are sitting on substantial profits. In such cases, there is typically less incentive for STHs to sell, thereby reducing the chances of sudden price drops.
This equilibrium in market sentiment is crucial. With neither cohort looking to cash out, ADA is less exposed to sharp volatility, creating an ideal setup for a sustained move higher—provided key resistance levels are overcome.
$0.60 Resistance Is Critical for ADA Bulls
Despite the bullish undercurrents, Cardano must establish $0.60 as a support level before further upside can materialize. This zone has emerged as a psychological and technical barrier. If ADA flips this level into solid support, it could rally toward $0.66, recovering more than the 24% it lost in early June.
However, failure to do so may result in ADA falling back into the $0.54–$0.60 range, which would invalidate the current bullish setup and likely lead to consolidation instead of breakout.
Cardano’s recent rally is underpinned by a stronger holder base and stabilizing market indicators. While the $0.60 resistance remains a pivotal challenge, the current market structure is encouraging for bulls.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano ETF Hype Builds: Analysts See 90% Approval Odds, ADA Eyes $0.70 Target
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
