Cardano (ADA) demonstrated resilience by avoiding a sharp drop, maintaining investor optimism in challenging market conditions.
This stability is now reflected in ADA’s price recovery, with support from long-term holders (LTHs) playing a significant role. With this support, the altcoin is poised to continue its momentum in the coming weeks.
Cardano investors back recovery
The MVRV Long/Short Ratio indicates that long-term ADA holders are currently in profit. Known as the backbone of any crypto asset, this group’s HODLing behavior helps prevent sharp declines.
As such, its resilience has been instrumental in ADA’s recovery, creating a stable foundation for future price increases. This consistent support from long-term holders has kept Cardano on track for a gradual recovery.
By holding their positions, these investors reduced selling pressure, allowing ADA to sustain its recovery and maintain market optimism. This dynamic is crucial to driving the altcoin’s positive price trajectory.
Cardano MVRV Long/Short Ratio. Fonte: Santiment
Overall macro momentum is improving, as seen in the MACD indicator. ADA recently experienced a bullish crossover, the first in almost a month. This technical signal suggests a shift in market sentiment, favoring a price recovery in January.
The bullish crossover reflects growing investor confidence and a positive outlook for the cryptocurrency. As broader market conditions improve, ADA is well-positioned to capitalize on this renewed momentum. This shift in sentiment could help sustain the altcoin’s uptrend in the coming weeks.
Cardano MACD. Fonte: TradingView
Price prediction
Cardano’s price has surged 11% in 24 hours, trading at $1.02 at press time. By breaking through the $1 resistance level, ADA has reignited investor optimism, signaling the potential for further gains. Holding this level is crucial to maintaining market confidence.
Holder support and favorable market cues could push the altcoin towards the resistance at $1.23. Reaching this milestone would signify a full recovery from recent losses, reinforcing the bullish outlook and attracting more investor attention.
Cardano Price Analysis. Source: TradingView
However, if investors start selling their holdings, ADA could lose the $1 support. A drop to $0.85 would invalidate the bullish momentum, raising concerns about further declines. Sustaining the current levels is vital to preserve the upward path.
The post Cardano (ADA) Above $1: Will the Uptrend Continue? appeared first on BeInCrypto.
