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Cardano’s price, overcoming a month-long resistance line, could sustain a rise above $0.5. The price of Cardano continues to be influenced by investor behavior, which could prove to be its savior. A notable shift from short-term to medium-term investors in supply was observed. While short-term investors tend to hold their assets for less than a month, medium-term investors hold their assets for up to a year.
What’s Happening on the ADA Front?
Within three weeks, the supply held by short-term traders dropped from 21.64% to 14.23%. This drop below 15% could be evidence that investors’ faith in holding ADA rather than selling is increasing. At the same time, medium-term holders now control 50.63% of all ADA supply. This is significant as short-term investors are more prone to selling, and their shift to medium-term is a sign of trust.
As seen in the Market Value to Realized Value (MVRV) ratio, this rise could potentially increase going forward. The MVRV ratio assesses an investor’s profit or loss. Cardano’s 30-day MVRV fell by 8.4%, indicating losses and potentially leading to accumulation.
Historically, ADA corrections occur within an 8% to 18% MVRV range, which could indicate a zone of opportunity. Therefore, if investors choose to add ADA to their wallets, the altcoin could see significant growth.
ADA Chart Analysis
At the time of writing, Cardano’s price, trading at $0.46, is close to closing above the $0.46 resistance. Turning this into support is crucial for ADA to rise to $0.50. The altcoin has only broken this level twice but never surpassed the month-long resistance of $0.51.
With the help of the above clues, Cardano’s price could break this resistance and move towards $0.55 and beyond. On the other hand, another failed breach could cause ADA to fall below $0.46. This would indicate a drop to $0.42, invalidating the bullish thesis and potentially sending ADA to the $0.40 level.
