Cardano holders refuse to sell - What will the price of ADA be?

In the past week, Cardano (ADA) has been trading within a narrow range as the broader crypto market attempts to recover. This coin is facing resistance at 0.75 USD and finding support at 0.69 USD.

Although the price is moving sideways, on-chain data shows that the trend is increasingly leaning towards the bulls, which could pave the way for a breakout upwards.

Cardano stuck in a narrow price range

While ADA has been moving sideways over the past week, the holding time of investors has significantly increased. Specifically, the average holding time has increased by 77% during the surveyed period.

This trend shows that investors prefer to hold long-term rather than sell in the short term.

Holding Period of ADA | Source: IntoTheBlockThe holding period of a token is a metric that measures the average time an asset is held in a wallet before it is sold or transferred. When this metric increases significantly, it indicates that Cardano investors tend to hold their assets rather than sell, reflecting a growing confidence in the long-term potential of ADA. If this trend continues, selling pressure may decrease, allowing ADA to break through the resistance level of 0.75 USD.

In addition, the realized Profit/Loss indicator on the (NPL) network of ADA is still negative, meaning that most holders will incur losses if they sell at the current time. This index is currently at -2.33 million USD.

! NPL of Cardano | Source: SantimentNPL is an indicator that measures the total profit or loss an investor makes when moving tokens on the blockchain, reflecting overall market sentiment. When NPL is negative, many investors are losing money, making them less motivated to sell. This helps reduce selling pressure and increases ADA's resilience, as more and more people choose to hold assets rather than accept losses.

The next step for ADA: Break 0.75 USD or retreat to 0.65 USD?

As of the time of writing, the price of ADA is hovering around 0.71 USD. The Relative Strength Index (RSI) on the daily timeframe continues to remain flat, confirming the current accumulation trend.

RSI is tasked with measuring the overbought or oversold conditions of an asset in the market. The current sideways movement of this indicator reflects a balance between buying and selling pressure, indicating that the market is not distinctly leaning towards either side. This is a sign of an accumulation phase, where the asset trades within a certain range without strong influence from bulls or bears.

However, with ADA being steadily accumulated, a breakout above the resistance level of 0.75 USD could occur soon. If successful, ADA may target 0.77 USD.

Cardano Price Analysis | Source: TradingViewConversely, if it loses the support level of 0.69 USD, ADA may reverse and drop to 0.65 USD.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We do not take responsibility for your investment decisions.

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