Cardano (ADA) price is showing signs of a potential recovery, but it requires significant support from the market and investors.
If Cardano’s price successfully increases, the currently unprofitable supply of 1.7 billion ADA could turn profitable.
ADA holders remain optimistic, as evidenced by the consistently increasing Mean Coin Age.
Cardano’s (ADA) price appears to be on the path to recovery, but the altcoin’s success heavily relies on the support it receives from the market and its investors.
Fortunately for Cardano, ADA holders are already demonstrating a desire to experience gains once again, which could prove to be a crucial factor in the cryptocurrency’s potential recovery.
Cardano Investors Maintain Strong Conviction Despite Price Decline
Despite Cardano’s price registering lower lows throughout June, investors have not been deterred from holding onto their ADA tokens. The Mean Coin Age, an indicator that measures the average age of coins held, has been consistently increasing, suggesting that investors are retaining their ADA for longer periods.
This steady rise in the Mean Coin Age is a clear indication of the unwavering confidence that investors have in the future performance of the asset. The behavior of holding onto tokens for extended durations is often interpreted as a sign of strong conviction among investors, even in the face of challenging market conditions.
The rising Mean Coin Age underscores the resilience of ADA holders, who remain optimistic about the cryptocurrency’s prospects, even as the price strives to reclaim key support levels.
The steadfast conviction of ADA holders could also translate into a significant increase in profits for investors. According to the Global In/Out of the Money (GIOM) metric, Cardano is currently facing losses of approximately 1.7 billion ADA, which were purchased between $0.39 and $0.42. This $683 million supply has the potential to considerably impact the market.
However, if Cardano’s price manages to achieve a successful increase, this currently unprofitable supply could turn profitable. Consequently, more investors would likely be attracted to the asset, bolstering the overall resilience of ADA in a bearish market.