Cardano (C-48) has recently seen a significant decline, erasing the gains it made earlier this month. This decline has raised concerns among C-50 holders.
, especially long-term token holders (LTHs), who have now chosen to withdraw their investments.
This increasing selling pressure, fueled by fears of further losses, is putting Cardano's price at risk.
Cardano holders are heading to sell
The recent surge in the "Spent Age" metric indicates that long-term Cardano holders are actively selling their holdings. This surge, the largest in nine months, signals a decline in investor confidence. The "Spent Age" metric tracks the movement of coins that have not been traded for a long time.
A rise in this metric means that long-term holders are withdrawing their investments, which can significantly impact the asset's stability. When long-term holders begin selling, it typically signals a shift in market sentiment and can further erode confidence, especially in a bear market.
This selling behavior by fixed-height investors (LTHs) is worrisome, as they typically have a strong impact on price movement. As these investors withdraw their investments, the market faces additional downward pressure, making it more difficult for Cardano to regain its positive momentum in the near term.
ADA: Age Used.
Cardano's overall momentum is also affected by weak investor inflows. The Chaikin Money Flow (CMF) indicator, which measures asset accumulation and allocation, is currently stuck below zero. This indicates weak inflows, preventing any significant price appreciation for ADA.
The lack of new capital entering the market is contributing to the asset's inability to recover and stabilize, even as some traders continue to sell. This decline in investor confidence is also reflected in overall market sentiment. With the Chaikin Money Flow Index remaining below zero, there is little optimism for a near-term trend reversal.
$ADA price needs to recover
Cardano is currently trading at $0.61, holding above the $0.60 support level after a 14.6% decline over the past seven days. However, due to ongoing selling pressure and weak market conditions, the altcoin is vulnerable to further declines. If this trend continues, it could drop below the $0.60 support level and approach the next major support level at $0.57.
If the Cardano price drops below $0.60, continued selling could lead to further losses, pushing the price closer to $0.57. This would exacerbate investor losses and likely reinforce negative sentiment toward the altcoin. With long-term investor confidence weakening, the Cardano price is vulnerable to further declines in the coming days.
Cardano price analysis.
On the other hand, if Cardano can maintain the support level at $0.60 and rebound, it may regain its upward momentum. A recovery from this level could help the altcoin target the local support level at $0.66. If investor selling slows and confidence begins to return, Cardano's price could rally towards $0.70, invalidating the current bearish outlook.
