Cardano (ADA) Price Prediction: Will It Break Above the $0.75 Resistance or Drop to $0.65?

Cardano has traded within a tight range over the past week as the broader crypto market attempts a recovery. It has faced resistance at $0.75 and found support at $0.69.

Cardano (ADA) has traded in a tight range over the past week as the broader crypto market attempts a recovery. It has faced resistance at $0.75 and found support at $0.69.

Despite the price consolidation, on-chain data reveals a strengthening bullish bias that could pave the way for an upward breakout.

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As the holding time of an asset measures the average duration of time its tokens are being held in wallet addresses before being sold or transferred, this time period varies greatly between cryptoassets.

While holding time is a useful metric for assessing the short- or long-term nature of an asset, it can also be used to identify trends in investor behavior, such as increasing or decreasing willingness to sell.

In the case of ADA, the average holding time of the asset has increased significantly over the past week, rising by 77%, according to blockchain analytics firm IntoTheBlock.

This signals that investors are choosing to hold onto their Cardano for longer periods, transferring or selling their tokens less frequently.

Signals That ADA Is Readily Accumulated By Long-Term Investors

As this time spikes, it indicates that Cardano holders are opting to hold onto their assets rather than sell, suggesting growing confidence in the asset’s long-term potential.

This would help reduce selling pressure on ADA and increase the likelihood of a potential rebound as more investors are making the conscious decision to keep their investments.

Furthermore, if the trend persists, it could lead to ADA breaking out of its current price range and making a move toward the next resistance level at $0.75.

Additionally, ADA’s Network Realized Profit/Loss (NPL) remains negative, meaning most Cardano investors would be rolling in losses if they were to sell now. At press time, this indicator stands at -2.33 million.

This metric, which is also known as realized P&L, measures the total profit or loss that investors realized when they move their coins on-chain, providing insight into overall market sentiment.

When NPL is negative, it indicates that more investors are at a loss, which usually lessens the urgency to sell due to the hopes of recovering any losses.

This would help reduce selling pressure in the ADA market and increase the likelihood of a potential rebound as more investors are holding onto their assets rather than realizing losses.

On the other hand, a breakdown below the $0.69 support could trigger a decline to $0.65.