Cardano (ADA) has been on quite a roll lately, reaching a seven-month high. But keeping those gains might not be easy as market conditions hint at a possible shift in how investors feel.
In the past couple of weeks, short-term investors have taken the lead in Cardano’s market activity. These folks usually hold onto their assets for less than a month. When things get volatile, they tend to sell. Their share of ADA holdings has jumped from 14% to 18%. This could mean selling pressure is on the horizon.
While short-term activity is rising, the overall market mood still leans optimistic. This balance helps, but the growing number of short-term investors shows a fragile situation that needs watching. It might even signal that the market is nearing its peak.
Right now, Cardano is going through a significant change. Its moving averages are showing a Golden Cross, which is a bullish sign. This happens when the 50-day moving average crosses above the 200-day moving average. It marks the end of a six-month Death Cross. This Golden Cross is the first for Cardano in a year and suggests a potential long-term upward trend.
Historically, these Golden Crosses have been linked to major price increases. However, whether ADA can ride this wave depends on the broader market conditions and if it can withstand any changes in investor behavior.
As of now, Cardano’s price is sending mixed signals, sitting at $0.58. While the market indicators are generally positive, the surge in short-term investors raises some red flags about possible selling pressure.
If the bullish trend keeps going, ADA could climb to $0.62. Breaking through this level might help Cardano target $0.66, which would strengthen its position in the market.
On the flip side, if ADA can’t hold above $0.59, it could drop down to $0.54. If it falls below that, the bullish outlook may fade, and we could see the altcoin slide to $0.51. That would pose significant risks for its recovery.