Cryptocurrency analytics firm Alphractal has published a new report on Cardano (ADA) investor behavior and on-chain data.
According to the analysis, long-term investors (LTH) have been accumulating ADA since 2021, and no significant sell-off has been observed so far. This, according to the analysis firm, demonstrates investors' confidence in the network and their patient wait for major price movements.
Short-term investors (STH), on the other hand, are more neutral. However, a slight accumulation trend has been observed recently. This group, which sold aggressively in response to price increases in the 2021 cycle, is not exhibiting the same behavior this time around, suggesting low selling pressure.
According to Alphractal's assessment:
- Long-term investors maintain their strong stance and continue saving.
- Short-term selling pressure is low.
- Risk and temperature indicators do not yet point to market enthusiasm.
- A rise in the Adjusted Sharpe Ratio could be a sign of strong price movements.
The Market Temperature indicator, featured in Alphractal's chart, is constructed by combining the MVRV Z-Score (40%), the RVT (Realized Value – Transaction) ratio (30%), and the Net Unrealized Profit/Loss (NUPL) (30%). High values indicate an overbought (hot market), while low values indicate an oversold (cold market) and an opportunity for accumulation.
*This is not investment advice.
