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Cardano Jumps 12 % as Long-Term Holders Refuse to Sell

2 mins
Updated by Harsh Notariya
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In Brief

  • Cardano's price has risen 12% today, aiming to recover 24% losses from June, supported by key holder groups, LTHs and STHs.
  • LTHs are shifting back to HODLing, and the neutral market condition between LTHs and STHs reduces selling pressure, stabilizing the price.
  • Cardano needs to secure $0.60 as support to target $0.66; failure to do so could lead to consolidation between $0.60 and $0.54.
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Cardano’s price has risen 12% in the last 24 hours, offering ADA holders hope for recovery after a 24% loss in June. 

This shift in momentum is supported by key holder groups, long-term holders (LTHs), and short-term holders (STHs), both of whom are hesitant to sell. These factors may provide the stability needed for a price rebound.

Cardano Holders Refrain From Selling

The Mean Coin Age (MCA) data reveals that LTHs are returning to HODLing after a brief period of selling. This shift toward accumulation is vital for reversing the overall negative momentum observed in recent months. LTHs control a substantial portion of Cardano’s circulating supply, and their decision to hold rather than sell can significantly influence the price.

This change in sentiment from the LTHs is helping create a more sustainable market environment for ADA. Their actions are crucial in providing support as the LTH’s stability typically stabilizes Cardano’s price.

Cardano MCA
Cardano MCA. Source: Santiment

The MVRV Long/Short Difference currently sits at a neutral mark, signaling that neither LTHs nor STHs are sitting on profits. This neutrality is an important indicator, as it suggests that short-term holders are not yet in profit, which would typically prompt them to sell and drive the price down. 

With both groups of holders in a neutral stance, the pressure to sell is significantly reduced, which can help stabilize Cardano’s price. This market condition provides a favorable setup for Cardano, as neither cohort is likely to cause downward price pressure through mass selling.

Cardano MVRV Long/Short Difference
Cardano MVRV Long/Short Difference. Source: Santiment

ADA Price Needs To Secure Support

As of the time of writing, Cardano’s price is up 12%, trading at $0.60. However, this level represents a key barrier that Cardano has yet to establish as support. The market sentiment and accumulation trends provide a positive backdrop, but the altcoin faces a critical test at this level.

Securing $0.60 as support could signal the beginning of a more sustained upward movement.

If Cardano successfully flips $0.60 into a support level, the next logical price target would be $0.66. This move would indicate that the cryptocurrency is recovering more than the 24% losses seen in early June.

Cardano Price Analysis.
Cardano Price Analysis. Source: TradingView

However, if Cardano fails to push past the $0.60 mark and drops back due to unforeseen bearish conditions, it could consolidate within a range of $0.60 and $0.54. This would invalidate the current bullish outlook.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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