Cardano’s price has risen 12% in the last 24 hours, offering ADA holders hope for recovery after a 24% loss in June.
This shift in momentum is supported by key holder groups, long-term holders (LTHs), and short-term holders (STHs), both of whom are hesitant to sell. These factors may provide the stability needed for a price rebound.
Cardano Holders Refrain From Selling
The Mean Coin Age (MCA) data reveals that LTHs are returning to HODLing after a brief period of selling. This shift toward accumulation is vital for reversing the overall negative momentum observed in recent months. LTHs control a substantial portion of Cardano’s circulating supply, and their decision to hold rather than sell can significantly influence the price.
This change in sentiment from the LTHs is helping create a more sustainable market environment for ADA. Their actions are crucial in providing support as the LTH’s stability typically stabilizes Cardano’s price.
Cardano MCA. Source: Santiment
The MVRV Long/Short Difference currently sits at a neutral mark, signaling that neither LTHs nor STHs are sitting on profits. This neutrality is an important indicator, as it suggests that short-term holders are not yet in profit, which would typically prompt them to sell and drive the price down.
With both groups of holders in a neutral stance, the pressure to sell is significantly reduced, which can help stabilize Cardano’s price. This market condition provides a favorable setup for Cardano, as neither cohort is likely to cause downward price pressure through mass selling.
Cardano MVRV Long/Short Difference. Source: Santiment ADA Price Needs To Secure Support
As of the time of writing, Cardano’s price is up 12%, trading at $0.60. However, this level represents a key barrier that Cardano has yet to establish as support. The market sentiment and accumulation trends provide a positive backdrop, but the altcoin faces a critical test at this level.
Securing $0.60 as support could signal the beginning of a more sustained upward movement.
If Cardano successfully flips $0.60 into a support level, the next logical price target would be $0.66. This move would indicate that the cryptocurrency is recovering more than the 24% losses seen in early June.
Cardano Price Analysis. Source: TradingView
However, if Cardano fails to push past the $0.60 mark and drops back due to unforeseen bearish conditions, it could consolidate within a range of $0.60 and $0.54. This would invalidate the current bullish outlook.
