Cardano’s ADA has skyrocketed 12% over the past three days, testing key resistance levels that have been upside down since mid-August.
The uptrend indicates that short-term holders (STHs) have delayed sales, with on-chain data showing wider market demand for ADA. These could set a breakout stage on a $0.92 wall.
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Cardano’s rally is supported by a real influx
ADA’s ratings for the used Coin Age Band (30D-60D) revealed that it has been steadily declining since September 16th. At press, this is 47,230 ADA.
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According to Santiment, the metric tracks the movement of ADA coins that have been held in your wallet for 30-60 days before it is spent. Simply put, it tracks whether a short-term holder (STH) is selling coins or choosing to hold them.
The rise in value of this band indicates that coins held for just one or two months will be moved to exchange or liquidation, increasing the pressure of selling from STH.
Conversely, similar to ADA, the decline suggests that recently accumulated tokens are being spent. STH often promotes price volatility, so their decision to retain reduced sales pressure and may have contributed to the ADA double-digit gathering over the past three days.
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Additionally, measurements from the ADA/USD one-day chart confirm a bullish bias towards Altcoin. For example, its Chaikin Money Flow (CMF) has risen significantly, and is currently sitting at a 42-day high of 0.11.
The CMF indicator measures the flow of power-weighted flows from an asset. Such positive values indicate that the purchase pressure exceeds the sales pressure.
For the ADA, a strong increase in CMF emphasizes that the actual influx is in favor of recent gatherings and that the door can be opened further upwards at a near stage.
Cardano Bulls push breakout and the Bears are ready to drag to $0.84
The slower STH selloff and increased purchasing activity suggest that ADA is building the momentum needed to challenge the $0.92 resistance level. Success overcoming this barrier could raise the price of the ADA to $0.98.
However, once the Bears regain control, the price could be reduced to $0.84.
