- The holders at a loss could dampen bullish fervor, especially for Cardano.
- If the assets breach the key resistances highlighted, the going might get easier.
Recently, the prices of Cardano (ADA) and Shiba Inu (SHIB) have remained relatively stable with bearish pressure in the short term. ADA is currently holding onto its support at $0.568, but its position seems uncertain. Shiba Inu, on the other hand, appears to be headed towards a demand area that’s 13% lower.
A recent post by a cryptocurrency expert on X observed that a significant number of investors in Cardano and Shiba Inu, along with other alternative coins, currently find themselves underwater with their holdings. So, what does this mean?
Cardano and Shiba Inu bulls have an uphill battle ahead
In the context of options trading, an out-of-money option has a specific definition. However, when speaking about crypto holders, it signifies that they are experiencing losses. Based on IntoTheBlock’s data, 50% of ADA holders and 28% of Shiba Inu holders have incurred losses at the current market prices.
In simpler terms, if the total value of an investor’s holdings is greater than what the market currently values those holdings at, then the investor is experiencing a loss.
A significant portion of the overall ownership was held by this group, suggesting that a price increase might lead to extensive selling due to profit-taking.
Among the two coins, ADA is more likely to experience increased selling due to a larger number of its holders incurring losses if they choose to sell at present. Insights from technical analysis can help identify where this selling pressure may be most pronounced.
Cardano and Shiba Inu were in undergoing retracements
In March, the cost movement of ADA reached a fresh peak of $0.81. However, it subsequently retreated to the assistance of $0.568. Additionally, the trading volume has noticeably decreased over the last week. This indicates that the price is stabilizing or consolidating.
As of now, the rally hadn’t been brought up for consideration. However, considering the frequent tests of the support level, a potential drop back towards the 78.6% retracement level at $0.525 seemed plausible.
Beyond the $0.8 mark, there may be a significant increase in selling activity. According to higher-level chart analysis, the $0.8-$0.84 and $1-$1.05 ranges function as formidable resistance levels capable of halting any bullish momentum.
Shiba Inu displayed comparable patterns to Cardano. The trading activity decreased significantly, and buyers failed to surpass the $0.000032 mark, previously acting as a supportive barrier during the initial half of March.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
In a one-week time span, the chart indicated that the regions between $0.000031 and $0.000032, as well as $0.000039 and $0.00004, were the two areas to be cautious of due to their bearish tendencies.
If investors holding losses on their positions decide to sell, the market pressure to sell could increase further. Alternatively, those looking to make a small profit might also choose to sell, intensifying the selling pressure in the market.
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2024-04-12 11:03