Cardano （ADA） has experienced a decline in selling pressure as on-chain data reveals a significant increase in the holding period of its tokens.
Points
- ADA’s Mean Coin Age and Mean Dollar Invested Age have increased by 7% since May 30.
- Surge in large holders’ inflow indicates strong buying interest.
- Technical indicators suggest a potential short-term price decline.
Cardano’s Increased Holding Period
Despite a 48% decline from its year-to-date peak, Cardano （ADA） has seen a reduction in selling pressure. On-chain data reveals a significant increase in ADA’s Mean Coin Age and Mean Dollar Invested Age since May 30, both reaching yearly highs. The Mean Coin Age measures the average age of tokens in circulation, while the Mean Dollar Invested Age tracks the average age of every dollar invested into ADA’s market cap.
Increased Inflow from Large Holders
The inflow from large holders, or addresses holding over 0.1% of ADA’s circulating supply, has surged by over 20,000% in the past 90 days. This significant increase indicates a strong buying interest among major investors, reducing overall selling pressure.
Technical Indicators and Price Prediction
Despite the bullish on-chain metrics, ADA’s Moving Average Convergence/Divergence （MACD） indicator is set to confirm a bearish bias. The MACD line resting below the signal line suggests potential short-term price declines. If the downtrend persists, ADA could fall to $0.31, marking a significant low since October 2023. However, if buying momentum increases, ADA could rally to $0.43.
解説
- Holding Period Metrics: Increases in Mean Coin Age and Mean Dollar Invested Age suggest reduced selling pressure and long-term investor confidence.
- Large Holder Activity: Significant inflows from large holders indicate strong buying interest, which can support price stability.
- Technical Analysis: Understanding MACD and other technical indicators is crucial for anticipating potential short-term price movements.