Cardano (ADA) Price Forecast: Bulls take on 800M ADA Resistance this Week

Cardano Price Insights:  

• Cardano (ADA) price closed the week above $0.50, marking a swift 16% recovery from the 50-day low of $0.43 recorded on Tuesday, Jan 2023. 
• ADA recorded a significant drop in Mean Coin Age as prices hit $0.50 on Jan 27, signaling widespread profit-taking. 
• Historical accumulation trends show that the ADA price is now approaching a major resistance cluster at $0.51.

Cardano (ADA) price made a swift 16% recovery to close the week at $0.50 after having tumbled to the 50-day low of $0.43 on Tuesday, Jan 23. On-chain data trends examine how investors’ reactions and historical accumulation trends could impact ADA prices in the days ahead. 

Is ADA price on the verge of a major breakout phase, or will the consolidation phase linger? 

Profit-taking Signals Emerged as Price Crossed $0.50

ADA price tumbled to a 50-day low of $0.43 as Fear Uncertainty and Doubt (FUD) spread across the crypto markets in the aftermath of the spot BTC ETF approval verdict. Resilient Cardano bulls have managed to stage a swift rebound toward $0.50 at close of the week on Jan 27, raising speculations of a potential breakout toward to $0.60 

However, early reactions from current Cardano holders could scuttle the ADA price breakout prospects. 

Santiment’s Mean Coin Age data measures the average age of all coins in circulation. It provides insights into the average time that coins have been held by their respective holders.

As Cardano price crossed $0.50 on Jan 27, ADA Mean Coin Age recorded a noticeable decline from 47.3 to 45.2. 

This suggests that a significant number of previous long-held coins were moved as investors sought to exit at the $0.50 area. 

A decline in mean coin age during a price rebound phase is often interpreted as a short-term bearish signal. 

Essentially, the chart above illustrates that despite last week’s 16% rebound, Cardano holders are still currently low on confidence. Hence, a significant number of investors closed out their positions as ADA price approached the critical psychological resistance milestone at $0.50, 

And if this trend persists, it will likely trigger pullback below $0.50, and possibly scuttle ADA’s chances of a breakout toward $0.60 in the short-term. 

Cardano Price Forecast: 800M ADA Sell-Wall Could Trigger a Pull-back

Cardano price appears to be on an upward trajectory, but looking beyond the price charts, the fundamental on-chain data trends analyzed above suggest an imminent pullback. 

IntoTheBlock’ Global In/out of the money (GIOM) chart also affirms this stance. It shows that 74,000 existing holders had acquired 800 million ADA at the average price of $0.51. 

If those holders execute another profit-taking wave as illustrated by the Mean Coin Age downtrend on Jan 27, Cardano price rebound phase will likely hit a brick wall and reverse toward $0.48.

On the other hand, the bulls can invalidate this narrative if the ADA price can reclaim $0.55.