ADA price rises as short term sellers retreat, targeting an increase above $0.92.

In the past three days, the price of ADA from Cardano has risen to the sky by 12% and is currently testing an important resistance level, which has limited the upward momentum since mid-August.

This increase occurs against the backdrop of on-chain data showing that short-term investors (STHs) have reduced selling activity, while demand in the market for ADA is also trending upwards. These factors could pave the way for a breakout above the resistance level of $0.92.

###The rise to the sky of Cardano is supported by real money flow.

An analysis of the coin age group that spent (Spent Coins Age Band) of ADA over the past 30 to 60 days shows that this metric has been declining continuously since September 16, currently reaching 47,230 ADA.

The age of coins spent according to ADA | Source: SantimentAccording to Santiment, this index tracks the movement of ADA coins that have been held in wallets for 30 to 60 days before being spent. In other words, it shows whether STH are selling ADA or choosing to hold.

The increase in value during this period indicates that selling pressure from STH is rising, as the number of ADA held for one or two months is being transferred to exchanges or liquidated. Conversely, the price drop suggests that fewer recently accumulated ADA are being spent. Since STH often causes price volatility, their decision to hold reduces selling pressure and may have contributed to the strong rise of ADA in the past three days.

Moreover, the indicators from the one-day chart confirm a positive trend for ADA. For example, the Chaikin Money Flow (CMF) of ADA has experienced a rise to the sky and is currently at its highest level in 42 days at 0.11.

The Chaikin Money Flow index (CMF) of ADA | Source: TradingViewThe CMF index measures the flow of money into and out of an asset based on volume, with positive values indicating that buying pressure is greater than selling pressure.

For ADA, the strong rise in CMF emphasizes that real money flow is supporting the recent recovery and may open up opportunities for the next price increase in the near future.

###The bulls are pushing for a breakout while the bears are ready to pull the price down to $0.84

The slowdown in selling by STHs, along with increased buying activity, indicates that ADA is accumulating the necessary momentum to challenge the resistance level of $0.92. If it can successfully close above this barrier, the price of ADA could reach $0.98.

Cardano price analysis | Source: TradingViewHowever, if the bears regain dominance, they could trigger a drop down to the $0.84 resistance level.

Mr. Teacher