Cardano’s Holding Time Soars 78% as Traders Eye Support Above $1

Over the last week, there’s been a notable rise in the duration that Cardano (ADA) coins are being held. This trend implies that investors might be keeping their ADA tokens for extended timeframes.

A positive sign suggests that investors are becoming increasingly optimistic about the short-term prospects of this cryptocurrency, as they anticipate its value to hold steady above one dollar.

Cardano Traders Resist Selloffs

Over the last week, BeInCrypto’s analysis shows an increase of 78% in the duration that all Cardano (ADA) coins are being held after transactions, as reported by IntoTheBlock.

The length of time that an asset’s traded coins remain in wallets is equivalent to the average period tokens spend in wallets before being either sold or moved elsewhere.

Prolonged ownership times among investors lead to less frequent selling, signaling a strong belief in the potential of their assets. This reduction in sell-offs has been instrumental in boosting ADA’s worth by approximately 8% during the last seven days.

Additionally, it’s worth noting that the funding rate for Cardano (ADA) in perpetual futures contracts continues to be positive, indicating a cost to borrow ADA. At present, this rate is set at 0.01%.

A favorable interest rate on investments means that traders are prepared to pay extra to keep long-term investments, implying robust optimism or ‘bullish’ sentiments in the market.

ADA Price Prediction: Breakout Above $1.12 Resistance

In my analysis, I’ve observed that on a daily scale, the price of ADA hovers slightly above the upper boundary of the symmetrical triangle it has been navigating for the recent weeks.

This pattern emerges when an investment’s cost fluctuates, showing progressively lower peaks (highs) and progressively higher troughs (lows), which eventually converge to form a triangle on the graph. This indicates a phase of stabilization, during which there’s a chance for a breakout in either direction as market pressure intensifies.

Should ADA investors choose to keep their holdings for a longer period and positive sentiment continues to grow, it’s likely that the price of ADA will extend its upward trend and approach its monthly peak of around $1.32.

Conversely, an increase in buying activity may contradict this optimistic forecast for Cardano (ADA). If such a situation arises, the price of ADA might dip below $1 and trade around $0.72 instead.

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2025-01-15 16:18