TLDR
- Cardano (ADA) has been trading in a range since December, currently forming a smaller range near long-term lows between $0.73-$0.84
- The cryptocurrency is trading below its 20-period moving average at around $0.74, threatening to break its bullish market structure
- Short-term momentum appears bearish on 4-hour charts with declining trading volume since May 24
- Santiment data shows network-wide accumulation since April, with mean coin age trending higher indicating limited selling pressure
- Medium-term holders sit at 26.5% profit (90-day MVRV) while long-term investors show only 8% gains (365-day MVRV)
Cardano has maintained range-bound trading since December 2024. The cryptocurrency has formed a smaller trading range over the past three weeks near its long-term range lows.
The current price action shows ADA trading between $0.73 and $0.84. This represents a contraction from the broader range that has defined the token’s movement for months.
On the daily chart, Bollinger Bands remain relatively wide. This indicates ongoing volatility despite the recent range formation.
The cryptocurrency maintained a bullish market structure until recently. This structure emerged after ADA recovered and reclaimed the $0.68 range low as support in early May.
A subsequent rally established higher lows at $0.74. However, ADA now trades below this level, creating pressure on the bullish structure.
The 20-period moving average currently sits above the current price. This positioning suggests bearish short-term momentum has taken hold.
Short-Term Technical Picture Shows Weakness
The 4-hour chart reveals tighter Bollinger Bands around price action. ADA has slowly declined toward $0.73 over the past five days.
Moving averages on the 4-hour timeframe confirm bearish momentum. The On-Balance Volume indicator shows a gentle decline over the past three days.
Trading volume has decreased since May 24. Despite lower volume, sellers have maintained dominance in recent sessions.
The mid-range level sits at $0.78 within the current $0.73-$0.84 trading zone. Price action has struggled to maintain levels above this midpoint.
Network Data Reveals Accumulation Pattern
Santiment data shows interesting holder behavior across different timeframes. Short to medium-term holders currently sit at healthy profit levels.
The 90-day Market Value to Realized Value ratio stands at 26.5%. This indicates medium-term holders have accumulated decent gains.
Long-term investors show more modest returns. The 365-day MVRV sits at just 8%, suggesting limited profit-taking pressure from this group.
The mean coin age metric has trended higher since mid-April. This pattern typically indicates network-wide accumulation behavior.
Recent price declines have not triggered intense selling waves. The mean coin age data supports this observation with continued upward movement.
Network-wide accumulation appears to be ongoing since April. This pattern suggests underlying strength despite recent price weakness.
Bulls may find buying opportunities if prices drop to $0.71-$0.725. This level could provide support based on historical price action.
The combination of accumulation data and technical levels creates a mixed picture. Bears currently control short-term momentum while longer-term holders continue accumulating.
Current price action sits near $0.74, with the cryptocurrency testing its recent higher low level established in early May.
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