The digital asset Cardano is in a rather tight situation right now.
In the past days, it had a massive sell-off and just like the rest of the crypto market, has lost 30% of its value. On-chain metrics are also saying that long-time holders are already exiting and taking profits.
Data analysis shows that Cardano has failed to stay above the 100 simple moving average (SMA) and there is a high possibility that it can quickly fall to its previous record low of $1.07.
Long-time holders exiting the network are one of the bearish indicators for the crypto asset.
ADA holders diminish over time
The number of investors that hold ADA, Cardano’s cryptocurrency, for one year or longer, has significantly dropped in the last 12 months. From nearly 54% in April 2020, it is now currently down to 12%.
This data indicate that long-term holders are taking their profits and starting to lose faith that Cardano’s price can continue to climb.
It is also important to note that in the same period, the number of traders that are holding ADA for no longer than a month vastly grew, especially since the beginning of 2021. While others are quick to think that this is a very good indication, it only shows that Cardano is now more speculative.
Lots of support on the way down
If there is one thing going in the way of Cardano and ADA now, it’s the support it has found on its way down.
An In/Out of the Money Around Price (IOMAP) chart indicated that the area between $1.24 and $1.27 where 98,000 addresses brought 2.24 billion ADA is a strong support point. The area between $1.27 and $1.12 is a significant support range.
On the other hand, space between $1.42 and $1.45 holds the most significant area and if Cardano can conquer again the 100 SMA, the digital asset is likely to jump towards the 50 SMA at $1.35, leaving $1.45 as the next target for a bullish run.
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