Cardano (ADA) is grappling with a formidable challenge in reclaiming the $1 price level, as on-chain data reveals a massive sell wall of 4.3 billion ADA. This resistance zone, identified by IntoTheBlock’s Global In/Out of the Money indicator, highlights heavy selling pressure from approximately 309,450 addresses that purchased ADA between $0.947 and $1.09 at an average cost of $1.03.
This sell wall creates a psychological and technical barrier, as many holders may seek to break even or minimize losses by selling near these levels. Overcoming this resistance will be pivotal for ADA to achieve sustained price recovery above $1.
Cardano’s Current Price and Market Dynamics
As of the latest data, Cardano is trading at $0.919, marking a 13.99% decline over the past week. The cryptocurrency’s struggles mirror the broader market downturn, with Bitcoin posting its first weekly loss in several weeks and other altcoins experiencing similar setbacks.
ADA is attempting to hold support near $0.86, close to its 50-day Simple Moving Average (SMA). However, analysts caution that a failure to maintain this level could push ADA further down.
The next major support lies between $0.659 and $0.834, a range where roughly 238,860 addresses accumulated ADA. This zone could provide temporary stability, though a breach might lead to further declines to $0.69 or even $0.50.
The Path to Breaking Above $1
Despite these challenges, a bullish scenario remains possible. A decisive move above $1 would signal strong buying interest and could invalidate the bearish outlook. In such a case, ADA’s price may consolidate between $0.80 and $1.20 before targeting higher levels, such as $2.
Crypto analyst Ali points out that ADA’s current price movements resemble patterns observed during its previous market cycle. If history repeats itself, Cardano could potentially reach a long-term target of $6, reflecting optimism for its recovery and growth prospects if market sentiment improves.
Cardano’s price remains at a critical juncture. The 4.3 billion ADA sell wall between $0.947 and $1.09 poses a significant obstacle to recovery. However, strong support below $0.834 could prevent further declines, keeping the possibility of a bullish breakout alive. As market conditions evolve, ADA’s price trajectory will depend on its ability to overcome resistance and capitalize on potential buying interest.
Also Read: Cardano’s ADA Price Could Soar to $6 As Analyst Identifies Key Historical Pattern
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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