Cardano Price Under Threat As Selling Reaches 9-Month High

Cardano (ADA) has recently experienced a significant decline, wiping out the gains it made earlier in the month. This downturn has raised concerns among ADA holders, particularly long-term holders (LTHs), who are now opting to cash out. 

This growing selling pressure, fueled by fears of further losses, is putting Cardano’s price under threat.

Cardano Holders Move To Sell

The recent spike in the “age consumed” metric indicates that Cardano’s long-term holders are actively selling their holdings. This spike, which is the largest in nine months, signals diminishing confidence among investors. The “age consumed” metric tracks the movement of coins that have not been transacted for a significant period. 

A rise in this metric means that LTHs are cashing out, which can have a notable impact on an asset’s stability. When LTHs begin to sell, it typically signals a shift in market sentiment and may further erode confidence, especially in a bearish market.

This behavior of selling by LTHs is concerning, as they typically have a strong influence on price action. As these investors cash out, the market faces additional downward pressure, making it more challenging for Cardano to regain positive momentum in the near term.

Cardano’s overall macro momentum is also affected by weak investor inflows. The Chaikin Money Flow (CMF) indicator, which measures the accumulation and distribution of an asset, is currently stuck below the zero line. This indicates that there are weak inflows, preventing any substantial rise in the price of ADA.

The lack of new capital entering the market is contributing to the asset’s inability to recover and gain stability, even as some traders continue to sell. This depleting investor confidence is also reflected in the broader market sentiment. With the CMF remaining below zero, there is little optimism about a near-term reversal.

ADA Price Needs To Bounce Back

Currently, Cardano is trading at $0.61, holding above the $0.60 support level after falling 14.6% over the past seven days. However, given the ongoing selling pressure and weak market conditions, the altcoin is at risk of further declines. If the current trend persists, it may fall below the $0.60 support level and approach the next key support at $0.57.

If Cardano slips below $0.60, the continued selling could trigger further losses, pushing the price closer to the $0.57 level. This would compound investor losses and likely intensify the bearish sentiment surrounding the altcoin. With little confidence from long-term holders, Cardano’s price is vulnerable to further declines in the coming days.

On the other hand, if Cardano manages to hold the $0.60 support and bounce back, it could regain some upward momentum. A recovery from this level could help the altcoin target the local support of $0.66. If investor selling slows down and confidence begins to rebuild, Cardano could rise toward $0.70, invalidating the current bearish outlook.