Cardano has experienced a surge of over 10%, successfully breaking a key resistance level and now testing higher prices. Despite this bullish momentum, on-chain data reveals that long-term holders are beginning to take profits, as indicated by the positive ratio of daily on-chain transactions in profit to loss.
This suggests that many investors are capitalizing on recent gains, leading to cautious profit-taking that may result in short-term price volatility. ADA aims to sustain its uptrend, supported by positive sentiment and growing optimism for further price recovery. The next few days will be crucial for ADA to hold above its current levels and push toward new highs.
Long-term holders are selling after a significant surge in ADA, as daily on-chain transactions in profit reached a ratio of 1.53. Data from Santiment shows a decline in Cardano's Mean Coin Age and Mean Dollar Invested Age, indicating that holders are taking profits and reducing the average age of the coins in their possession.
ADA's performance over the coming days is critical, as holding above the current levels could confirm a continued uptrend. A retest of the 4-hour 200 EMA could suggest further upward movement, targeting the $0.38 to $0.40 range. However, losing this support level might lead to a price drop to lower demand zones around $0.33.
If ADA manages to hold and gain control, it can break through key resistance levels for new highs. Investors and analysts are closely observing ADA's price action and on-chain metrics to gauge future movements and potential bullish trends.
