Cardano (ADA) remains stuck below $0.40, grappling with a lack of investor support that’s hindering its recovery. Despite a brief 7% surge in the last 24 hours, ADA struggles to break past the crucial resistance point at $0.37. This stagnation raises concerns about the potential for a prolonged downtrend.
Investor Apathy Dampens Recovery Hopes
The absence of a clear catalyst seems to be stemming investor participation. Many ADA holders are likely adopting a wait-and-see approach, avoiding transactions to minimize potential losses. This inactivity creates a vicious cycle – declining trading volume fuels the price drop, leading to further investor withdrawal.
The stakes are high, as highlighted by the Global In/Out of the Money (GIOM) indicator. Around 7.01 billion ADA, valued at over $2.5 billion, were acquired between $0.37 and $0.42. With the price currently hovering around $0.37, this entire supply is teetering on the brink of falling into negative territory.
Breaking the $0.37 Barrier: Key to Reversing Losses
For these investors to regain profitability, ADA needs to climb back above $0.37. This would not only prevent losses but also recoup the gains lost over the past week.
Cardano Price Prediction: A Delicate Balance
Reclaiming $0.37 as support would be a significant step towards recovery, potentially paving the way for further upward movement. However, the lack of recent activity and bullish sentiment suggests a potential struggle to overcome resistance levels. This could lead to ADA remaining stuck below $0.37 in the near term.
However, a successful test of the $0.37 support could trigger a breakout above $0.40, potentially invalidating the current bearish-neutral outlook and ushering in a period of renewed gains. The coming days will be crucial for Cardano, as bulls and bears battle for control of the price direction.
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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