Large Cardano holder netflow has experienced a significant decrease of 142% in the span of seven days. The number of holders has also dropped from 4.47 million to 4.40 million. This decline in netflow and holder count raises concerns about the stability of Cardano’s price, especially as it has fallen below key Exponential Moving Averages (EMAs) and is at risk of breaching the $1.05 support level.
The netflow metric for large holders is important in understanding the behavior of major market participants who control a significant amount of the circulating supply, ranging from 0.1% to 1%. The substantial decline in this metric indicates a shift from accumulation to distribution among these influential holders. This behavior often precedes periods of price weakness, as larger holders position themselves ahead of market movements.
In addition to the decline in netflow, Cardano’s holder count has also decreased from 4.47 million to 4.40 million since November. This suggests that profit-taking from the recent rally is outweighing new investor interest. The timing of this decrease is significant as it coincides with a period of price appreciation, indicating that longer-term holders may be reducing their positions.
Looking at the four-hour chart, there is critical technical damage as the price has fallen below both the 20 and 50 Exponential Moving Averages. These moving averages usually provide support during uptrends, and breaching them typically signals a shift in market structure. The position below these indicators suggests that shorter-term momentum has turned negative, increasing the likelihood of a test of deeper support levels.
Given these indicators of weakness, the $1.05 support level becomes crucial for maintaining market structure. If this level is breached, it could accelerate selling pressure towards $0.95. However, traders should be aware that a push back above the EMAs could invalidate this bearish scenario and potentially drive prices towards $1.19. The interaction between these technical levels and ongoing distribution patterns will likely determine Cardano’s next significant move.
