Cardano Price Tests Bulls Endurance As ADA Fights Record High | Cryptocurrency – NetCost and security

  • Cardano’s price cannot rise above $ 1.397.
  • The Weekly Relative Strength Index (RSI) breaks the split.
  • ADA’s annual ownership changes mark significant growth for traders.

Cardano’s price hit an all-time high and it was unable to rally in the broader cryptocurrency market. The 10-week simple moving average (SMA) has caught up with the price, but it may take a final trader’s trap to eliminate weak holders and attract speculators with a longer time horizon.

Long-term ADA Holders See Profits

The Intotheblock Ownership by Time Held indicator is useful for contextualizing the owner’s time horizon. By assessing the differences between long-term and short-term holder dominance, you can get a better idea of ​​the type of trading activity that is taking place for a particular cryptoasset.

The interaction between Cardano’s price and cryptoasset address classification has changed dramatically since May last year. Traders with ADA addresses less than one month accounted for 11.43% of the total, cruisers, ADA addresses between one and twelve months accounted for 34.97%, and Hodlers addresses with more than 1.a accounted for 53.6%. This month, traders make up 36.61%, cruisers 52.32% and hodlers just 11.07%.

The transformation was gradual, especially at the peak of the traders. Traders fell from 11.88% in December 2020 to 50.12% in February, indicating the continued price of Cardano, which rose sharply from the baseline of the high-grip cup in early 2021, and ultimately gained much higher price. its intrinsic value. In contrast, Hodlers fell from 32.88% to 15.85% in the same period, demonstrating that long-term speculators took advantage of the rise in prices to liquidate or reduce positions.

ADA Ownership by Retention Time

After the February peak, when the Carado price hit $ 1.559, the number of cruisers (1-12 million) fell from 34.02% to 52.32%, possibly due to the fact that late speculators shifted their time horizon to more than a month. refusing to incur losses or break even on their trades. Meanwhile, traders have remained the same, attempting to play a break above the all-time high.

If hodlers are considered smart money, Cardano’s price has a higher chance of resorption and lower as traders get liquidated at the first sign of trouble. Cruisers will have their own capture point, which will slightly increase the selling pressure on the chart.

Cardano Price gives way on the podium

Cardano’s price climbed four unsuccessful weekly rallies above the 2018 high of $ 1,397, with each lower in volume than the previous one. Meanwhile, the weekly RSI fell below the neckline of the head and shoulders top, confirming a break in momentum and making it difficult for the ADA to rise, especially thanks to the all-time high.

Another weekly close below the 10-week SMA would be a hit and likely trigger a sell-off, pushing Cardano’s price below the 100-day SMA at $ 1.04 and to an all-time low on April 23 at $ 0.890. This would be a welcome release from weak holders.

Weekly ADA Chart

Weekly ADA Chart

Only a weekly close above $ 1.397 would increase the likelihood of a further rally with Cardano’s price potential to reach a 161.8% expansion in April’s drop to $ 2.230 and then a 261.8% expansion to $ 3.935.

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