Cardano (ADA) is encountering a significant obstacle on its path to recovering the $1 price level. On-chain data reveals a sell wall comprising 4.3 billion ADA, standing as a barrier to further price recovery.
The data, sourced from IntoTheBlock’s Global In/Out of the Money indicator, highlights that these 4.3 billion ADA were purchased between $0.947 and $1.09, with an average cost of $1.03.
This range, encompassing approximately 309,450 addresses, represents a zone of heavy selling pressure as these holders may seek to break even or minimize losses by selling at or near these levels.
Such a substantial concentration of sellers creates resistance technically and psychologically as it coincides with a high-volume zone for Cardano (ADA). Until this sell wall is cleared, Cardano’s path toward sustaining a price above $1 may remain challenging.
Cardano (ADA) Price Movements and Current Levels
As of the latest data, ADA is trading at $0.919, reflecting a 13.99% decline over the past week. The broader cryptocurrency market has also witnessed a downturn, with Bitcoin experiencing its first weekly loss in several weeks—a trend that has similarly affected alternative cryptocurrencies, including ADA.
Cardano is currently battling to maintain support near $0.86, a level close to its 50-day Simple Moving Average (SMA). Analysts warn that if this support fails, ADA could face further declines.
The next significant support cluster lies between $0.659 and $0.834, where approximately 238,860 addresses had previously accumulated ADA. This zone may offer buying support and temporarily stabilize the price.
However, if ADA fails to hold these levels, bearish momentum could push the cryptocurrency lower, with possible declines to $0.69 or even $0.50.
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Breaking Above $1 and Potential Consolidation
Despite current market uncertainties, a bullish scenario remains possible. A decisive move above $1 would indicate strong buying interest and could invalidate the short-term bearish outlook. In such a scenario, ADA’s price may consolidate between $0.80 and $1.20 before attempting to chart a course toward higher levels, including the $2 mark.
According to crypto analyst Ali, Cardano’s price action closely mirrors patterns observed during its previous market cycle. He suggests if history repeats itself, ADA could reach a long-term target of $6. This optimistic projection reflects the potential for recovery and growth if the broader market sentiment improves.
Cardano’s price action remains at a critical point, with bullish and bearish scenarios in play. The 4.3 billion ADA sell wall between $0.947 and $1.09 represents a significant resistance zone that may delay ADA’s recovery to $1. At the same time, strong support levels below $0.834 could help cushion the cryptocurrency from further declines.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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