Cardano (ADA) has recently faced a decline in prices, with its token hovering at around $0.65. Despite several attempts to recover, the future of Altcoin remains uncertain.
Investor support is important at this point, and the situation could be worse at Cardano prices if a major ADA owner decides to sell.
Cardano Holder shows skepticism
The Chaikin Money Flow (CMF) is currently sitting in the bear zone below the zero line. This indicates that the spill is active and suggests that investors are selling ADA Holdings.
The CMF’s bearish reading shows uncertainty about Cardano’s future prospects, with investors moving to reduce exposure to tokens.
Continuous outflow refers to an increase in skepticism among ADA owners, especially as the broader market remains unstable. As investors lose confidence, there is a greater risk that more holders will choose to liquidate their positions.
Looking at the overall momentum, the long/short difference (from market value realized value) indicates that profits are changing from short-term holders (STH) to long-term holders (LTHS).
This is generally considered a positive indication as it indicates that long-term investors are holding their assets.
Skepticism among ADA owners may play a key role in determining whether the MVRV shift leads to bullish or bearish scenarios.
If LTHS chooses to sell its holdings in response to market pressure, it could lead to a wave of sales and further reduce the price of Cardano.
ADA prices can be reduced
At the time of writing, Cardano priced at $0.65, and the token hoveres a significant $0.66 resistance level. This level is key to increasing the price to $0.70.
However, mixed signals from market and investor sentiment suggest that ADA may struggle to break through this barrier.
If the ADA is unable to secure $0.66 in support, it could drop to $0.60, further extending the price drop.
The parabolic SAR is currently on the candlestick, showing bearish momentum. This indicator suggests that Cardano may not have the strength to push resistance and that the decline may continue if support is lost.
However, if Cardano can break past the $0.66 resistance, the price could rise to $0.70, potentially exceeding it.
If $0.70 is compromised in the next few days, it opens the door for a move to $0.74, negates the current bearish outlook and restores investors’ confidence in the future potential of the ADA.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
