Cardano (ADA) has experienced a significant price surge, gaining over 14% in the last week. However, on-chain analytics suggest that this surge might lead to considerable selling pressure from investors.
Data from Santiment indicates that 12% more of Cardano's supply is now in profit, compelling many to consider securing their profits amidst Cardano's unstable performance this year, which includes a YTD loss of over 35%.
Transaction patterns show that Cardano holders might lose confidence in the token's recent price surge, leading to potential profit-taking. IntoTheBlock data reveals 481,370 ADA addresses with average coin holding times of five months, likely to offload tokens if prices decline.
Crypto analyst Trend Rider provided a guide for investors, indicating key price levels and zones. He suggests a liquid zone between $0.22 and $0.31 and a profit-taking range between $0.42 and $0.55. A break above $0.75 could signal a bull market for ADA.
At the time of writing, ADA is trading at around $0.379, showing an almost 4% increase in the last 24 hours.
