Cardano (ADA) Holders Show Reduced Selling Pressure as On-Chain Data Indicates Long-Term Confidence

One of the most popular altcoins Cardano has been rather unfazed by the recent price corrections, where we saw Bitcoin drop to around $54,000.

One of the most followed altcoins, Cardano (ADA), has been showing relative stability amidst the recent market downturn, which saw Bitcoin (BTC) plunge to around $54,000.

However, ADA, which peaked at $0.77 in March, has also experienced a substantial decline, currently trading at around $0.40. Despite this downturn, on-chain data seems to indicate that ADA holders are showing less inclination to sell.

Recent data shows a rise in Cardano’s Mean Coin Age and Mean Dollar Invested Age since late May. At the time of writing, the Mean Coin Age is at 510 days and the Mean Dollar Invested Age is at 585 days — both reaching their highest points this year. These metrics indicate that investors are holding their ADA tokens for longer periods of time, suggesting a reduced selling pressure.

Moreover, the inflow of large holders — addresses holding over 0.1% of ADA’s supply — has surged by over 20,000% in the past three months, indicating increased buying from significant investors. While these indicators may suggest long-term confidence in ADA, the short-term outlook remains bearish.

The Moving Average Convergence/Divergence (MACD) indicator shows a bearish trend, with the MACD line currently below the signal line. This configuration often points to weaker short-term performance.

If the downward trend continues, ADA could potentially fall to $0.31, reaching a low not seen since Oct. 31, 2023.

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