Cardano's ADA Gears Up For A Big Move As Long-Term Holders Overtake STHs: What’s Next For ADA Price?

Cardano began November with slight bearish momentum, facing resistance challenges mainly from short-term holders. While these STHs struggle with uncertainty about ADA’s next direction, the network sees growing dominance from long-term holders, bringing confidence. Given this surge, there’s an increased possibility of a significant shift in ADA’s price by the weekend.

Long-Term Holders Surpass 2.7 Million

Following a robust 11% climb in October, Cardano traders are preparing for potential volatility this November. This altcoin, which recently hit its highest price since August, has gained attention to record further gains in Q4.

However, insights from Cardano’s historical trend suggest that ADA price is set to witness minor downward correction this month. Of the last five years, only one November, specifically three years prior, concluded with a surge of 85%. Such news presents ADA traders with a mixed choice of expectations for November: a potential breakout above $0.3 per token or a bearish momentum to $0.25.

Data from IntoTheBlock indicates a rising sentiment of confidence among ADA holders. In recent months, there’s been a notable uptick in the ADA price’s long-term confidence, with LTH addresses peaking at a staggering 2.7 million. Interestingly, the count of addresses holding ADA for under a year has seen a notable decline, pointing to a marked change in the ‘hodling’ mindset.

Additionally, despite a surge in transaction volume, the Network value has witnessed a significant drop recently. The NVT ratio, which measures the network’s value against transaction volume, decreased from its October high of 6.12 down to a low of 3.18, hinting at a reduction in market capitalization.

Nevertheless, during this time frame, transaction volume has consistently grown stronger. This increasing activity might indicate a potential upward price correction in the coming days.

ADA continues to trade within the resistance zone of around $0.3. However, the rising selling pressure near $0.3 is preventing the ADA price from initiating a breakout moment. The declining 20-day EMA with the RSI trading below the midline suggest a minor advantage for the bears. As of writing, ADA price trades at $0.29, declining over 0.85% in the last 24 hours.

Should the ADA price rebound around $0.28, the bulls will once more attempt to push the price beyond the immediate resistance at $0.3. Successfully achieving this could mark the beginning of a solid recovery aiming for $0.33, and subsequently, $0.38.  

On the bearish side, the bears are poised to counter any bullish trend. Their goal will be to pull the price below the 100-day EMA. Such an action would indicate that the ADA price might continue to hover within its bearish range of $0.22-0.25. However, bulls are expected to strongly defend any decline below this and trigger aggressive purchases.