Cardano Faces 22% Price Dip, Yet Long-Term Investors Stay Committed

Cardano has experienced a significant 22% decline in value within the last week, reflecting a trend across the broader cryptocurrency market. Currently, this popular cryptocurrency is trading at $0.73.

However, long-term holders (LTHs) appear unperturbed by this market shake-up. According to on-chain analytics, a notable number of these investors are opting to hold onto their assets rather than liquidate them.

Long-Term Holders Reinforce Their Commitment

The data reveals a consistent trend among ADA’s long-term holders, as evidenced by an increase in the Mean Coin Age metric. Recent insights from Santiment indicate this metric has risen by 1% since March 3.

Mean Coin Age provides insight into the average duration that coins remain in circulation, offering clues about market sentiment. An uptick in this value implies that investors are choosing to keep their coins, indicative of confidence in the asset’s future value. This trend suggests that strong hands are present in the market, potentially pointing towards a bullish outlook for ADA, especially against recent market headwinds.

Additionally, large holders—often referred to as whales—have been increasing their accumulation over the past week, further reinforcing positive sentiment towards the altcoin. Data from Santiment indicates that investors holding between 100,000 and 1,000,000 ADA tokens have collectively added 20 million ADA to their portfolios.

Increased holdings by major investors often indicate strong confidence, effectively reducing the supply in the market and applying upward pressure on prices.

ADA Sets Sights on $0.94 with Buyer Dominance

Current analyses via the daily chart show ADA’s Balance of Power (BoP) standing at a positive 0.30, which contrasts the strength of buyers against that of sellers.

A positive BoP suggests that buyers currently dominate the market, signaling potential upward momentum. If this buying strength continues, ADA's price could ascend towards $0.94. Should it convert this resistance into support, there is a possibility for prices to eventually reach $1.16.

However, a reversal in market dynamics that favors sellers could see the price pull back to $0.60, adding a layer of uncertainty in the short term.