Cardano: Long-Term Holders Take Profits ADA Price Surges
In Brief
Over the past week, ADA’s price gained 11%, drawing attention and prompting long-term holders to secure profits after enduring extended price fluctuations.
Over the past week, the price of ADA, the native token of the proof-of-stake blockchain platform Cardano, has drawn notable attention due to an 11% increase, standing in contrast to broader cryptocurrency market trends. This rise is noteworthy, especially given the ongoing market uncertainty, where many digital assets have faced challenges in gaining upward momentum. The price surge has been a welcome development for ADA investors and has sparked activity among long-term holders who have endured prolonged periods of price fluctuations, with some now opting to secure profits.
The recent price increase has created favorable conditions for transactions, leading experienced investors to sell portions of their holdings to lock in gains. This behavior has influenced the market dynamics for ADA, highlighting the interplay between short-term profit-seekers and those maintaining confidence in the token’s long-term potential. While some investors take advantage of the current opportunity to realize gains, optimism persists that ADA’s price could continue to rise if critical technical thresholds are breached. This discussion explores the latest developments related to Cardano, examining the factors influencing its current trends and providing a forecast for its future performance, with its price currently at $0.35 ADA/USDT on Gate.io.
Furthermore, over the past week, Cardano transactions have demonstrated considerable profitability, driven by a notable double-digit price increase, even as the broader cryptocurrency market faced downward trends. On a recent Thursday, the ratio of profitable daily on-chain transactions to those at a loss reached 1.53, indicating that for every ADA transaction resulting in a loss, 1.53 transactions were profitable.
This trend has encouraged long-term ADA holders to capitalize on gains by selling portions of their holdings, as reflected in slight declines in metrics such as Mean Coin Age and Mean Dollar Invested Age. According to analyst data, these metrics, which provide insights into the behavior of long-term holders, showed a decrease on September 11th. A reduction in these indicators suggests that long-term holders—often individuals who acquired ADA at lower prices—are securing profits, thereby lowering the average age of their held coins. This behavior underscores the ongoing market activity as investors balance profit-taking with potential future opportunities.
Overcoming Resistance Is Crucial For ADA Price Growth
Despite ongoing profit-taking by investors, Cardano’s price remains positioned for potential further growth. The cryptocurrency is currently attempting to surpass a descending trend line that has acted as a resistance barrier since July 15th. This type of downward resistance occurs when consistent selling pressure prevents the asset from advancing beyond a specific price level. However, the strong demand underpinning ADA’s recent price rally has fostered optimism about the possibility of breaking through this resistance.
Should ADA successfully move past this trend line, its price could potentially increase by 34%, reaching a two-month high of $0.48. Conversely, if selling pressure intensifies and buying interest weakens, ADA may fail to overcome the resistance. In such a scenario, the price could retreat to $0.27, invalidating the current bullish outlook. This balance between demand and selling activity will be crucial in determining the coin’s next significant price movement.
Cardano Showcases Steady Growth And Strategic Advancements
Recent developments within the Cardano ecosystem highlight its steady growth and strategic progress. In 2024, network activity experienced a notable surge, with daily active addresses surpassing 52,000 in early September, the highest level recorded in five months. This uptick in activity can be largely attributed to the introduction of a new Cardano-based meme token launchpad and the successful implementation of the Chang upgrade. This upgrade, part of the transition toward the Conway era, enhances the network’s scalability and efficiency, strengthening Cardano’s position in the competitive blockchain landscape.
The network’s technical capabilities continue to advance as well. The release of version 8.12.2 of the Cardano node has improved peer networking functionality, while progress in Mithril has furthered efforts in transaction certification and scalability. Another key milestone is the growth in the use of Plutus, Cardano’s smart contract platform, which saw the addition of nearly 3,000 new scripts in the past week, bringing the total to over 64,000. These advancements highlight the increasing adoption and utility of smart contracts on the platform.
Looking to the future, Cardano is prioritizing governance with the forthcoming Voltaire update. This update will introduce a treasury system that allows users to stake their ADA and earn voting rights, enabling decentralized decision-making within the ecosystem. By empowering the community to influence the platform’s development, this self-sustaining governance model is poised to play a pivotal role in Cardano’s evolution.
These initiatives and updates underline Cardano’s commitment to expanding its ecosystem while continually improving its technical infrastructure. As such, 2024 emerges as a crucial year for advancing the platform’s long-term growth strategy and fostering broader adoption.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
