Cardano (ADA) has surged in value by more than 6.8% in the previous week and moved above the crucial intraday resistance. This cryptocurrency is currently attempting higher price ranges, where some challenges are seen from the fundamental's perspective.
Cardano (ADA) On-chain Metrics Analysis
On-chain data indicates that long-term holders are starting to take profits despite this increasing trend. A favorable shift has occurred in the ratio of daily profits to losses in on-chain transactions, suggesting that many investors are taking advantage of the recent gains.
Cardano also assesses local supply levels following its spike, with short-term investors exercising caution. Yesterday, the daily on-chain transaction profit-to-loss ratio hit 1.53, which means that for every ADA transaction that resulted in a loss, 1.53 transactions generated a profit. According to this data, many investors are locking in profits, prompting some long-term owners to sell their assets at a profit.
According to data from Santiment, as of September 11, Cardano's Mean Coin Age and Mean Dollar Invested Age both showed a modest fall. These numbers, show the average age of ADA coins and the amount invested over time. A drop in these numbers indicates that holders are taking profits now that they purchased ADA at a lower price.
