Cardano's price climbs 8% as long-term holders consider selling

Cardano (CRYPTO:ADA) has experienced an 8% price recovery in the last 24 hours, bringing its value to $0.37.

This recent surge has prompted long-term holders to consider selling their holdings, as the network sees a sudden shift into profitability.

The July crash had driven Cardano's price to a nine-month low, leaving many investors waiting for an opportunity to secure gains.

The recent 8% rise has brought profits to the network, and within just three days, about 12% of the entire ADA supply has turned profitable.

This sudden profitability may lead to increased selling activity, as investors aim to lock in their gains.

The average holding time for the transacted ADA coins has now risen to five months, suggesting that even mid-term holders are selling.

This increase in holding time indicates a shift in market sentiment, as these holders are typically more resilient.

Their decision to sell may be a sign of waning confidence, which could disrupt the recent uptrend and introduce volatility into Cardano's price movement.

A successful breach could push ADA’s price up to $0.40, with the possibility of testing the $0.42 resistance level.

However, if the selling pressure from long-term holders continues, Cardano may fail to break this barrier and could instead fall back to $0.34, leading to a period of consolidation.

The recent increase in selling pressure from long-term holders, combined with the extended holding period of transacted coins, suggests that Cardano’s price might face challenges in sustaining its recent gains.

As investors weigh their options, the altcoin's price movement remains uncertain, with potential volatility on the horizon.

At the time of reporting, the Cardano (ADA) price was $0.3747.