Cardano (ADA) has witnessed a significant increase in the average duration that investors are holding onto their tokens, indicating a growing confidence in the cryptocurrency’s short-term prospects.
This trend reflects a change in sentiment, as holders anticipate the coin to maintain stability above the $1 threshold. Recent on-chain data reveals a substantial surge in the average holding period for ADA tokens during the previous week. Analysis conducted by IntoTheBlock shows a 78% increase in this duration within the review period.
The aforementioned metric represents the average amount of time tokens remain in wallets before being moved or sold. Longer holding times often indicate a decrease in market selling pressure.
This reduction in selloffs has contributed to an 8% surge in ADA’s value over the past week, showcasing a growing conviction among investors.
Furthermore, the funding rate for ADA in perpetual futures contracts remains positive, currently standing at 0.01%. A positive funding rate typically indicates a strong demand for long positions, thereby reinforcing the bullish sentiment in the market.