Cardano (ADA) is at risk: short-term investors' profits at a 5-month peak

Cardano! ! ADAUSDT is struggling to sustain growth. The price is under pressure from short-term holders who are actively taking profits

Let’s figure out what’s happening in the Cardano marketADAUSDT and what to expect from the price of the cryptocurrency.

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Cardano investors are ready to sell

MVRV ( ratio of market value to realized value ) Long/Short Difference for Cardano has dropped to -18% — the lowest in the last five months. This means that short-term holders may realize significant profits, the highest since November 2024.

This trend could have a negative impact on the price of Cardano, as short-term holders usually sell when they see profits, which could add to the downward pressure. With these holders now in the black, their selling is likely to exacerbate the current bearish trend.

The overall market dynamics of Cardano show additional signs of weakness. The Chaikin Money Flow indicator (CMF), which tracks the flow of money into and out of cryptocurrency, has been steadily declining since November 2024.

The indicator is currently below the zero mark, indicating a predominance of outflows over inflows and a lack of confidence among investors. CMF shows caution among market participants, who are reluctant to enter the game in a bearish trend. The lack of confidence is pushing investors away from Cardano.

ADA price may decrease

At the time of writing this analysis, Cardano is trading at $0.61, slightly below the important $0.63 resistance level. Despite attempts to recover, the altcoin has been moving in a downtrend for almost a month, which prevents its growth. Without a change in market conditions, it will be difficult for Cardano to regain lost ground and overcome said resistance.

If the market situation worsens, the price of Cardano may drop even lower - possibly to the support level of $0.57. This decline will increase investors’ losses and complicate recovery. Since market sentiment is mostly negative, it is unlikely that Cardano will break $0.63 in the near future.

If market conditions improve and investors regain confidence, Cardano may reverse the bearish trend. Transforming the resistance level of $0.63 into new support will negate the negative scenario and could push the price to $0.70. Breaking through this level will be an important change in dynamics.

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