Cardano (ADA) bulls have strongly defended the $0.25 resistance level, despite the recent decline in the global crypto markets. With high levels of unrealized losses, can Cardano holders hold on long enough to trigger a positive ADA price movement?

While other popular cryptocurrencies like Polygon (MATIC) and Ethereum (ETH) have experienced declines of 7% and 8% respectively after the recent Fed Rate announcement on June 14, ADA price has actually gained 2% during the same period.

On-chain data indicates that Cardano investors are reluctant to sell at unfavorable prices. But is this decrease in selling pressure enough to reverse ADA’s bearish trend?

Cardano Holders Are Growing Unwilling to Sell

Data from Santiment’s Market Value to Realized Value (MVRV) shows that most Cardano investors are currently facing significant unrealized losses.

In simple terms, the MVRV ratio compares the purchase price of ADA with its current market value, giving insight into the net financial position of investors.

The chart below reveals that investors who bought ADA in the past month would incur losses of nearly 24% if they sold at the current price of $0.27.

Considering the 24% net-loss position, it is not surprising that Cardano investors have mostly refrained from selling their holdings during the recent market turbulence. This suggests that holders may be keen on keeping their losses below 25%.

Interestingly, the last time Cardano investors faced such significant losses was in May 2022.

All these factors indicate a decrease in selling pressure across the Cardano network. If this trend persists, it is likely to trigger positive price action for ADA in the coming days.

Cardano Loyalists are Showing Some Resilience

Long-term participants in the Cardano ecosystem are demonstrating resilience in the face of the recent industry-wide sell-off frenzy.

Santiment’s Mean Coin Age data reveals a network-wide trend of accumulation, particularly among ADA long-term investors.

Mean Coin Age evaluates the sentiment of long-term investors by measuring the average number of days that coins in circulation have been held in their current addresses.

The chart below shows that between June 10 and June 16, ADA’s Mean Coin Age increased by 48% from 37.87 to 34.56.

During a price correction, a sharp increase in Mean Coin Age suggests that many investors are opting to hold their coins instead of selling them at unfavorable prices.

Although unintentional, this is likely to further reduce selling pressure and potentially trigger positive price action.

ADA Price Prediction: Bulls are Eyeing $0.30

Based on the above factors, it appears that Cardano bulls are targeting a return to $0.30. However, before this can happen, ADA must first surpass the $0.28 resistance level.

According to IntoTheBlock’s IOMAP data, ADA will likely encounter initial resistance around the $0.28 mark.

At this zone, there is a significant number of investors who bought 880 million ADA at an average price of $0.28. If ADA manages to break through this resistance, the bulls could push the rally towards $0.30.

Conversely, if ADA unexpectedly drops below the critical $0.25 support zone, it may invalidate the positive price action. However, the 31,000 investors who purchased 248 million ADA tokens at a minimum of $0.25 will likely provide support. In the unlikely event that the initial support level fails, ADA could retrace further towards $0.20.