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.
Sponsored
Sponsored
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.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
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.
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.
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.
Source: https://beincrypto.com/cardano-price-shows-signs-of-rally/