- ADA’s price might retrace if holders keep their tokens from circulating.
- Technical analysis identified a key support at $0.45 that might prevent a plunge.
Cardano’s [ADA] long-term holders have refrained from moving their tokens back into circulation, AMBCrypto found after analyzing the Mean Dollar Invested Age (MDIA).
According to on-chain data from Santiment, Cardano’s 90-day MDAI jumped to 269 on the 15th of April. A decreasing MDIA suggests increasing network activity.
Historically, this tends to be promising for ADA as holders move their assets into circulation.
On the other hand, an increase in the metric does otherwise as stagnant investments tend to restrict an upswing. At press time, ADA joined the broader market recovery as its price reclaimed $0.49.
Challenges ahead
However, an analysis of the price action showed that the token had found it hard to test the $0.50 psychological level.
If the MDIA continues to increase, ADA might not evade $0.50, but it could drop below $0.49 in the short term.
But this conclusion might be too hasty. As such, AMBCrypto went ahead to evaluate other metrics. One metric that we checked was the Mean Coin Age (MCA).
The MCA reveals similar signals to the MDIA, but with a slight difference. Here, a low coin age signifies that new coins have been accumulated, and discharged to a cold wallet.
But if the MCA increases, it means that a lot of coins have moved into circulation. Cardano’s correlation with an increasing coin age has been negative most times.
Th
Go to Source to See Full Article
Author: Victor Olanrewaju
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
