Cardano (ADA) has been grappling with price volatility over the past month, preventing the altcoin from reclaiming solid support at the $1.00 mark. 

Broader market cues remain neutral to bearish, limiting upward momentum. However, long-term holders (LTHs) of ADA are providing critical support, preventing significant price declines.

Cardano’s Price DAA (Daily Active Addresses) Divergence indicator has been flashing consistent sell signals over the past several days. This trend reflects declining participation among investors, which, coupled with a lack of meaningful price growth, has weakened bullish sentiment in the market.

Investors appear cautious, as the current market environment has dampened optimism. The uncertainty surrounding ADA’s growth trajectory has created a wait-and-see approach, with limited buying activity visible among both retail and institutional participants.

On a macro level, Cardano’s MVRV (Market Value to Realized Value) Long/Short Difference is highly positive at 45%. This indicates that long-term holders are sitting in significant profit. These investors, known for their resilience, are less likely to sell during periods of volatility, offering stability to ADA’s price.

In the case of Cardano, these LTHs play a pivotal role in reducing the impact of potential sell-offs. Their continued support prevents steep drawdowns, reinforcing confidence that ADA’s price may recover in the near term if broader market conditions improve.

Cardano is currently trading below $1.00, with its price at $0.91 as of this writing. Reclaiming $1.00 as support remains a key goal but will require overcoming the aforementioned bearish signals and limited market participation.

Should broader market conditions remain unchanged, ADA is likely to continue consolidating in the range of $0.85 to $1.00. This price band has historically served as a buffer zone for Cardano, allowing investors to regroup during periods of uncertainty.

However, if bullish momentum returns to the market, Cardano could breach the $1.00 resistance level. Securing $1.00 as a strong support would invalidate the bearish-neutral outlook and set the stage for a potential rally to $1.23, signaling renewed investor optimism in ADA’s long-term growth.

The post Cardano Investors Resist Sell-Off, Could Propel ADA Price Past $1 appeared first on BeInCrypto.

1 +