Cardano has experienced a precipitous 22% decline in value over the past week, aligning with broader cryptocurrency market turbulence. The digital asset, which ranks eighth in total market capitalization, currently trades at $0.73.
Despite this significant downturn, blockchain analytics indicate long-term holders have maintained their positions rather than liquidating assets. This behavior suggests a persistent confidence in the cryptocurrency's underlying fundamentals despite short-term price volatility.
On-chain metrics reveal a consistent pattern of holding among established Cardano investors, evidenced by an increasing Mean Coin Age metric. Data from analytics platform Santiment shows this indicator has risen 1% since March 3, representing a meaningful shift in investor behavior during the market downturn.
The Mean Coin Age indicator tracks the average time all tokens have remained in their current wallets, providing insight into investor sentiment and market trends. Rising values typically indicate investors are retaining their assets despite market pressure, signaling accumulation patterns and confidence in long-term value propositions. Such patterns often precede potential price recoveries, particularly notable given recent headwinds affecting the broader cryptocurrency ecosystem.
"When Mean Coin Age rises, it suggests that investors are holding onto their coins, signaling accumulation and confidence in the asset's long-term value," market analysts note.
Additionally, substantial wallet addresses classified as "whales" – those controlling between 100,000 and 1,000,000 Cardano tokens – have increased their holdings during the examined period. Santiment data confirms these large-scale investors have collectively acquired approximately 20 million additional Cardano tokens within the past week alone.
Market analysts observe that significant accumulation by large stakeholders typically represents a strong vote of confidence in an asset's future prospects. This concentrated buying reduces available market supply, potentially creating upward price pressure when market sentiment shifts.
Technical indicators offer additional context for Cardano's market position. The daily chart's Balance of Power indicator registers a positive 0.30 reading, suggesting buyers maintain stronger market influence than sellers despite recent price declines. This metric compares relative strength between market participants, with positive values indicating buyer dominance that could translate to upward price movement if sustained.
Based on current technical patterns, analysts project Cardano could potentially rally toward the $0.94 resistance level. Should buyers successfully convert this threshold into a support level, further appreciation toward $1.16 becomes technically feasible.
Conversely, if selling pressure intensifies and overcomes current buyer momentum, Cardano's value could deteriorate further toward the $0.60 support level, representing an additional 18% decline from current valuations.