- Cardano remains below the $1.13 resistance level after two corrections this month.
- The Mean Coin Age metric suggests long-term holders (LTHs) are maintaining confidence in ADA.
- Declining correlation with Bitcoin raises concerns of isolated market struggles for Cardano.
Cardano has faced challenges regaining bullish momentum, with the altcoin repeatedly failing to break through the $1.13 resistance level. After two corrections this month, ADA remains subdued despite a generally bullish sentiment in the broader cryptocurrency market. Optimistic long-term holders, however, continue to hold onto their positions, lending stability to the price.
Cardano Investors Look to Long-Term Stability
The Mean Coin Age (MCA) indicator for Cardano has been steadily increasing, suggesting that long-term holders (LTHs) are retaining their ADA instead of selling. This behavior has helped stabilize the altcoin’s price despite the lack of upward momentum.
The rising MCA reflects confidence in Cardano’s long-term potential, as LTHs anchor the price by avoiding liquidation. This steadfastness has mitigated selling pressure, keeping ADA relatively steady in the face of broader market fluctuations.
However, ADA’s decreasing correlation with Bitcoin—currently at 0.54—raises concerns among traders. Historically, lower correlations have led to bearish outcomes for Cardano. This disconnect from Bitcoin’s price trends could isolate ADA, making it more susceptible to its own market conditions. Without broader market support or ADA-specific bullish triggers, the altcoin may continue to struggle.
Price Outlook: Breaking Resistance or More Consolidation?
Cardano is currently trading slightly below its $0.99 support level, after failing to surpass the critical $1.13 barrier. The inability to hold key levels highlights the challenges in generating upward momentum.
If the broader market continues its bullish trend, ADA could see a shift in sentiment. Breaking through the $1.13 resistance level would likely attract renewed investor interest and pave the way for a rally toward $1.23 and beyond. Such a move would invalidate the current bearish outlook and restore optimism among traders.
For now, mixed signals from long-term holders and macro indicators suggest that Cardano may remain under resistance until a decisive bullish trigger emerges. Investors should remain cautious, as market sentiment for ADA continues to reflect uncertainty.
