Investor Confidence in ADAu00a0Leads to Anticipated Surge in Cardano Price
Cardano (ADA) has the potential to reach $0.50 if it can surpass resistance at $0.4450, indicating a strong upward movement. Despite market volatility and recent downturn, ADA investors are showing strong confidence by holding onto their coins for longer periods. However, failure to breach the $0.4225 resistance could lead to ADA dropping to $0.400, or even $0.3880.
With a market cap of $14.8 billion, Cardano (ADA) has recently shown signs of a potential recovery after finding strong support at $0.3800. It has surpassed key resistance levels of $0.4150, outpacing Bitcoin and Ethereum.
Currently, ADA is consolidating its gains after hitting a high of $0.4225. However, it’s not just ADA’s price action that’s catching attention, but also the steadfast confidence of its investors amid market fluctuations.
Despite facing downward trends in June, ADA investors have remained strong in their holdings. The Mean Coin Age, a metric indicating the average duration coins are held, has consistently risen, suggesting strong confidence in the cryptocurrency’s future performance.
The rise in Mean Coin Age highlights investors’ strong confidence in ADA’s prospects, despite market volatility. According to the Global In/Out of the Money (GIOM) metric, ADA faces potential losses on approximately 1.7 billion ADA purchased between $0.39 and $0.42, totaling $683 million. However, if ADA’s price continues to rise, this supply could turn profitable, potentially attracting more investors and bolstering ADA’s resilience in a bearish market.
Looking ahead, if ADA fails to breach the $0.4225 resistance level, it may face further downside. Meanwhile, instant support is expected around $0.4120, followed by major support near $0.4080 and the second trend line. A drop below $0.4080 could lead to a test of $0.400, with additional support near $0.3880.
As of now, ADA is trading at $0.4138 reflecting a surge of 1.5% seen in the last 24 hours with a market cap of $14.8 billion. If the price manages to close above $0.4450, it could start a strong upward movement, potentially pushing it towards $0.50.