Cardano (ADA) has surged in value by more than 6.8% in the previous week and moved above the crucial intraday resistance. This cryptocurrency is currently attempting higher price ranges, where some challenges are seen from the fundamental's perspective.
Cardano (ADA) On-chain Metrics Analysis
On-chain data indicates that long-term holders are starting to take profits despite this increasing trend. A favorable shift has occurred in the ratio of daily profits to losses in on-chain transactions, suggesting that many investors are taking advantage of the recent gains.
Cardano also assesses local supply levels following its spike, with short-term investors exercising caution. Yesterday, the daily on-chain transaction profit-to-loss ratio hit 1.53, which means that for every ADA transaction that resulted in a loss, 1.53 transactions generated a profit. According to this data, many investors are locking in profits, prompting some long-term owners to sell their assets at a profit.
According to data from Santiment, as of September 11, Cardano's Mean Coin Age and Mean Dollar Invested Age both showed a modest fall. These numbers, show the average age of ADA coins and the amount invested over time. A drop in these numbers indicates that holders are taking profits now that they purchased ADA at a lower price.
ADAUSD Could Be Affected By SEC's Decision
In related regulatory news, the ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC), Binance, Binance.US, and co-founder Changpeng Zhao has seen significant development. The SEC has filed a move to modify its initial complaint against the company in response to a court ruling that rejected Kraken's request to have identical charges dismissed.
According to the SEC's updated position, ten significant cryptocurrencies, including Cardano (ADA), are no longer automatically regarded as securities. The regulator is still adamant that the way these tokens are sold may make them liable to securities regulations.
This evolution occurred following a judicial decision that dismissed the SEC's expansive construal of virtual currencies. Binance has until October 11th to reply to the amended complaint from the SEC.
Cardano Price Prediction Technical Analysis
In the daily Cardano (ADA) daily chart, the recent price shows a corrective bearish pressure with a divergence formation. It is a sign that the existing selling pressure from the March 2024 high has weakened and the price will likely rebound once the bottom is validated.
In the volume structure, the largest activity level since March 2024 is working as crucial resistance at the 0.4480 level. Investors might expect the downside pressure to continue as long as this high volume line is intact.
Looking at the MA wave, the current resistance is strong above the 0.4020 static level, which is an immediate barrier to bulls.
Based on the daily market outlook of ADA price, the ongoing buying pressure might continue and find resistance at the 0.4020 level. However, a valid bearish reversal from the 0.4000 to 0.4480 area might resume the bearish trend, aiming for the 0.2780 level.
On the other hand, a valid bullish breakout with a daily candle above the 0.4480 high could validate the bullish reversal, and extend the momentum at the 0.6850 level.
