Year-to-date, Cardano’s (ADA) price has decreased by 46%. As a result, ADA holders are losing faith in the token’s long-term potential as it pushes closer to the critical $0.30 mark. 

Growing concerns over ADA’s declining price and stagnant momentum have fueled this sentiment. As bearish pressure mounts, this analysis checks if further losses are on the horizon or if the altcoin will see a rebound.

As of this writing, Cardano’s price is $0.33 despite hitting $0.41 on September 27. According to BeInCrypto’s findings, the decline is associated with the notable decrease in the token’s Coins Holding Time.

The Coins Holding Time measures the amount of time a cryptocurrency has been held without being sold. When it increases, it means that holders are confident about the gains the crypto in question might produce.

Conversely, a decrease in the metric implies that holders are liquidating the asset, indicating that they are no longer confident in its short-term potential. Based on IntoTheBlock’s data, the ADA’s Coins Holding Time has fallen by nearly 50% in the last seven days, suggesting that many holders are selling the token.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

Another on-chain metric fueling this speculation is the Mean Coin Age (MCA), which is the weighted age of each token on a blockchain. A low coin age suggests that investors have accumulated new tokens and retired them to a cold wallet, which is usually a bullish sign.

Spikes in the metric, however, imply that holders are moving old tokens out of their wallets. In most cases, this means these holders are planning to sell, as they are with Cardano. If the MCA continues to climb, ADA’s price might not experience recovery but rather continue declining.

A look at the daily chart shows that ADA has formed a head-and-shoulders pattern. This pattern is a bullish-to-bearish chart reversal that indicates an accelerated downtrend. As seen below, the technical pattern has three peaks: the left shoulder, head, and right shoulder.

The baseline of the head and shoulders pattern is at $0.34. Cardano’s price has slipped below that point, reinforcing the weakness in its trend. The Relative Strength Index (RSI) also supports the bias as it has fallen below the neutral line.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

This decline implies bearish momentum. If this trend continues, Cardano’s price might drop below $0.33 and head to $0.30. On the flip side, the token still has a chance to rebound if holders stop selling. In that scenario, ADA could jump to $0.38.

The post Cardano Holders Pass Vote of No Confidence on ADA, Price Eyes $0.30  appeared first on BeInCrypto.

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