Cardano’s volatility exposed: Why holding $1 remains a challenge
The post Cardano’s volatility exposed: Why holding $1 remains a challenge appeared on BitcoinEthereumNews.com.
Cardano’s circulating supply increased as older coins moved, signaling a blend of profit-taking and long-term accumulation. What will it take for ADA to hold above $1? Cardano [ADA] surged to $1.13 amid peak whale activity, recording 2,645 transactions over $100K – the highest in three months. This strategic accumulation followed ADA’s historic 72.15% single-day rally. However, ADA struggles to hold above $1, now trading at $0.94 despite a 4.77% crypto market rebound and Bitcoin’s bullish recovery. Santiment data highlighted a decline in ADA’s average wallet age, signaling increased token circulation. Is this a sign of profit-taking or a strategic repositioning for long-term accumulation? AMBCrypto investigated. Cardano’s price volatility exposed Despite whale transactions reaching a three-month high, Cardano struggled to hold above $1, coinciding with a sharp decline in Mean Dollar Invested Age (MDIA). A falling MDIA suggests increased token circulation, indicating that older coins are being moved – a potential sign of profit-taking or redistribution. Source: Santiment However, this MDIA dip aligned with a surge in Total Value Locked (TVL) on Cardano’s DeFi platforms, jumping from $397.98M to $573.3M in just two days. This suggests that rather than exiting, investors are redeploying capital into staking, reinforcing a long-term accumulation strategy. Yet, TVL remains well below its $800M post-election peak, indicating significant unstaking activity that aligned with ADA’s decline below its $1.25 election high – pointing to aggressive profit-taking. Still, TVL’s sharp rebound – despite a broader market correction in high-cap assets – suggests sustained confidence in future gains. Keeping an eye on this trend will reveal whether HODLing sentiment holds strong in the days ahead, as Cardano nears the critical $1 resistance once again. What’s next for ADA? Since its post-election peak, Cardano has formed three lower lows, establishing key demand zones at $0.80 and $0.60. Source: TradingView (ADA/USDT) Its…
Filed under: News - @ March 6, 2025 4:26 am