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Cardano (ADA) Shows Early Strength—Will Long-Term Holders’ Profit-Taking Cap the Move?

07 October 2025 10:00 UTC
Trusted
  • Cardano trades at $0.87, consolidating below $0.88 resistance as long-term holders take profits, limiting momentum toward the $1.00 mark.
  • A dip in Mean Coin Age signals selling by older wallets, but RSI nearing bullish territory hints at potential recovery if sentiment improves.
  • ADA may stay rangebound between $0.83 and $0.88; a breakout above $0.88 could lift it to $0.93 and reignite investor confidence.
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Cardano’s price action has remained largely stagnant over the past few days despite broader market strength. The altcoin, once showing promising momentum, is struggling to sustain a consistent rally. 

Mixed signals from both investors and external market conditions have left ADA consolidating without clear direction, reflecting hesitation among traders.

Cardano Holders Need To Show Restraint

The Mean Coin Age (MCA), a key on-chain indicator tracking the average age of all held tokens, recently showed a slight decline after several weeks of upward movement. This downturn suggests that long-term holders (LTHs) have started selling, capitalizing on short-term gains as Cardano’s price climbed earlier this week.

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Historically, a declining MCA signals renewed market activity from older wallets distributing tokens. In contrast, rising MCA reflects accumulation and holding behavior. The latest dip in the metric highlights cautious optimism among investors, as many prefer profit-taking amid uncertain sentiment. 

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Cardano MCA
Cardano MCA. Source: Santiment

From a technical standpoint, Cardano is showing the early stages of strengthening bullish momentum. The Relative Strength Index (RSI) has moved upward, nearing the transition from neutral to bullish territory. This shift is significant since previous RSI rebounds from bearish levels have historically preceded notable ADA price rallies.

If this pattern repeats, Cardano could benefit from renewed market confidence.. Combined with supportive macroeconomic conditions, ADA’s recovery could gather pace once investor sentiment aligns with improving technical signals.

Cardano RSI
Cardano RSI. Source: TradingView

ADA Price Needs To Break Out

Cardano’s price currently trades at $0.87, hovering just below its immediate resistance of $0.88. The token remains approximately 14% away from the psychologically important $1.00 level, a threshold that could reignite market enthusiasm if successfully breached.

Given the mixed outlook from investors and technical indicators, ADA is likely to continue its sideways movement. The cryptocurrency may remain rangebound between $0.83 and $0.88 until decisive buying volume emerges.

Cardano Price Analysis.
Cardano Price Analysis. Source: TradingView

However, if long-term holders pause their selling and market sentiment improves, ADA could break past the $0.88 barrier and rise toward $0.93. Such a move would restore bullish confidence and potentially pave the way for a broader recovery phase in the weeks ahead.

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 Conditions, Privacy Policy, and Disclaimers have been updated.