Cardano has struggled to regain bullish momentum after multiple failed attempts to breach the $1.13 resistance level. The altcoin has faced corrections twice this month, reflecting market uncertainty.
While the broader cryptocurrency market has seen bullish sentiment, Cardano’s price remains subdued. However, optimistic investors continue to hold onto their ADA holdings.
Cardano Investors Hope For a Rise
The Mean Coin Age indicator for Cardano has been rising, signaling positive market sentiment. This metric reflects that long-term holders (LTHs) are choosing to retain their ADA rather than sell. This behavior anchors Cardano’s price, preventing a sharp downturn despite the lack of significant bullish momentum in recent weeks.
LTHs’ commitment to HODLing ADA is providing much-needed stability for the altcoin. Their unwillingness to liquidate holdings suggests confidence in Cardano’s long-term value. This steadfastness has limited downward pressure on the price, ensuring that ADA remains relatively steady even amid broader market fluctuations.
Cardano’s correlation with Bitcoin has dipped to 0.54, raising concerns among traders. Historically, such declines in correlation have led to bearish outcomes for ADA’s price. This disconnect from Bitcoin’s price movement could result in Cardano underperforming if the trend persists.
Lower correlation often makes an asset more susceptible to isolated market conditions. For Cardano, this could mean continued struggles in breaking critical resistance levels unless broader market conditions improve. The decreasing correlation reinforces the need for bullish triggers specific to ADA to counteract potential declines.
ADA Price Prediction: Finding Support
Cardano is currently trading at $0.97, just under the support level of $0.99, after failing to breach the $1.13 barrier. This inability to hold key levels highlights the challenges the altcoin faces in gaining upward momentum.
The mixed signals from long-term holder behavior and macro indicators could keep Cardano subdued. If these conditions persist, the altcoin may remain stuck under the resistance of $1.13, limiting short-term price growth. Investors should remain cautious as market sentiment remains uncertain.
However, broader market bullishness could shift the outlook for Cardano. If ADA manages to break past the $1.13 resistance level, it could rally toward $1.23 and higher. Such a move would invalidate the current bearish sentiment and potentially attract renewed investor interest.
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