Cardano (ADA) has been gaining popularity as a long-term investment among holders as more and more people choose to keep their coins for over a year. This trend shows growing confidence in the cryptocurrency’s potential and is seen as a positive sign for its future growth.
Long-term holders of ADA are less likely to sell their coins during times of market volatility, which can help stabilize the price. This is important for the overall stability of the cryptocurrency market as it prevents sharp price drops caused by panic selling.
Moreover, as more people hold onto their ADA, the circulating supply of the cryptocurrency decreases, which can potentially lead to an increase in demand for the remaining coins, driving up the price. It is a basic economic principle of supply and demand, and it bodes well for the future of Cardano.
Cardano’s Price Declines To Multi-Week Low
While Cardano’s recent performance has shown positive growth, the trend took a downturn on March 2 as the price dropped to a multi-week low. Starting from the $0.42 resistance level, the price fell below the $0.38 support level, entering into a bearish mode.
The decline picked up speed below the $0.35 level until the bulls managed to establish a foothold near the critical $0.35 support zone, resulting in a low being formed near $0.3489 yesterday.
According to current data by CoinMarketcap, ADA is trading at $0.3375, forming new lows. The daily chart shows a 5% decline in the price, while the trading volume seems bullish, with a 90.20% rise in the past 24 hours.
Looking forward, Cardano’s price faces immediate resistance at the $0.3560 zone, with the following significant resistance forming near the $0.370 zone. The price failing to surpass these resistance levels may trigger a fresh decline.
Nevertheless, despite the recent price drop, the growing number of long-term holders of Cardano is a positive sign for the cryptocurrency’s future potential. The stability they provide can help prevent sharp price drops during market volatility.
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