Cardano Faces Pressure as Support Level Threatens
Key Takeaways
Cardano (ADA) is currently under pressure. Despite a short-term price increase of 28% from the low of $0.50 USD, it lacks sustainable momentum. Important on-chain data suggests a potential crisis of confidence among long-term investors. If the price fails to hold the support level at $0.63 USD, a stronger correction could follow.
FOMO Fades – What This Means for ADA
The hype surrounding Cardano has clearly diminished. Not long ago, ADA ranked among the top 8 cryptocurrencies by market capitalization. It has since dropped to 10th place. This decline is not due to stronger competition, but rather to weaker fundamentals within the Cardano network.
A key indicator: network volume has dropped to $1.35 billion USD – a significant decrease from the peak of $7.8 billion USD on April 7. This means: less activity, fewer transactions, and reduced confidence.
Long-Term Investors Under Pressure
Many long-term holders (LTHs) are currently at a critical juncture. The price is at a level last seen in November. Those who entered during the election-driven rally are now breaking even or already in the red.
The “Mean Dollar Invested Age” (MDIA) – an indicator of the average age of invested capital – has been in a clear downtrend since mid-March. This suggests that older coins are increasingly being moved or sold. This is typical behaviour during distribution phases, when investors begin to offload their holdings.
Sell Signals Increasing
Another important indicator: “Age Consumed.” This measures how many older coins are suddenly being moved again. A sharp increase in this value indicates that long-term investors are reactivating their ADA holdings – usually to sell them.
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The combination of a declining MDIA and rising Age Consumed points to growing selling pressure. If this trend continues, ADA could lose the critical support level at $0.63 USD.
What Happens If $0.63 USD Breaks?
If ADA falls below $0.63 USD, it would be a technical warning signal. Without new buyers or fresh capital entering the market, this could trigger a stronger correction. This would be especially concerning if a potential rebound – a short-term recovery – fails to materialize or is weak.
Our Assessment
Cardano is at a pivotal stage. Current data suggests a possible shift from accumulation to distribution. This means more investors are selling rather than holding. The support level at $0.63 USD is a key threshold. If it breaks, ADA could come under further pressure.
For you as an investor, this means: monitor on-chain data closely. Pay particular attention to MDIA, Age Consumed, and network volume. These metrics provide early signals of potential price movements.
Caution is advised at this time. If you are already invested, consider reassessing your position. If you are planning to enter, wait for clear signs of stabilization.
Sources
- Artemis Terminal
- Santiment
| Symbol | ADA |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $0.68 |
| 24h % | -2.82 % |
| 7d % | 9.09 % |
| 30d % | -7.95 % |
| 60d % | -12.37 % |
| 1y % | 33.70 % |
| Market Cap | $24,449,620,550.00 |
| Max. Supply | 45,000,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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