Cardano (ADA), the native token of the Cardano blockchain, has been painting a mixed picture for investors in recent days. After a surge of 34.48% since July 6th, breaking above the $0.4260 resistance level, ADA has experienced a 4.5% pullback, retesting that same level. This raises the question: is this a pause before a further climb, or a sign of a coming correction?
On-chain data from IntoTheBlock reveals a market divided. While 34% of addresses are currently in profit, a substantial 61% remain underwater. This imbalance could lead to selling pressure from those seeking to recoup losses. However, it also presents a potential buying opportunity for those anticipating a continuation of the uptrend.
Further complicating the picture is the concentration of ADA among large holders, currently at 28%. This means “whale” behavior could significantly influence price movements. However, there are also bullish signs. The high volume of large transactions over the past week, totaling $28.19 billion, suggests strong institutional interest in Cardano. Additionally, the net network growth remains steady, and the number of long-term holders “in the money” sits at a healthy 10.94%.
Looking at exchange data from Coinglass, we see significant fluctuations over the past 24 hours, with periods of strong bullish dominance followed by bearish reversals. As of now, there appears to be a spike in long positions, indicating building momentum as the market awaits a clear direction.
A Crucial Juncture for ADA
Cardano now faces a critical test as it approaches the $0.4671 resistance level. Investors should closely monitor two key factors:
- Continued Momentum: Will the recent buying pressure hold, propelling ADA towards the next resistance level?
- Signs of Exhaustion: Will the bulls lose steam, leading to a more significant retracement?
The recent pullback to $0.4260 could be either a launchpad for further gains or the beginning of a deeper correction. Only time will tell which scenario unfolds, but one thing is certain: the coming days will be crucial for Cardano’s future price trajectory.
Also Read: Cardano (ADA) Up 35% In A Week: Can Whales Steer It Towards A Bullish July?
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.
About The Author
