- Cardano’s price, at press time, was hovering around the $0.33 key level
- Only 16% of all addresses seemed to be in profit
As a seasoned researcher with years of experience observing market trends, I find myself standing at the precipice of a conundrum when it comes to Cardano (ADA). At press time, ADA seems stuck between the $0.33 support and potential resistance levels, much like a cat contemplating whether to nap or hunt.
The value of Cardano (ADA) could be at a critical juncture, given it’s currently challenging significant support zones on its price charts. As we speak, the cryptocurrency is trading around $0.33, which is a price point that has shown both support and resistance in the past.
Currently, despite the market showing signs of recovery, the performance of Cardano has been rather lethargic. To be precise, it’s been lingering within its current price range for quite some time, and unfortunately, buyers haven’t managed to generate sufficient momentum yet.
It’s clear that the asset’s performance is slow and this slowness is also reflected in its profitability indicators. As per data from IntoTheBlock, a mere 15.85% of Cardano wallets hold “In The Money” assets. This suggests that there are relatively fewer investors with strong positions in the asset, potentially hindering any significant price increases.
Most Cardano holders are calm…
It’s worth noting that approximately 79.88% of the addresses examined had spent money buying ADA at a price higher than its current value. With prices increasing, this large number of positions in the red could lead to a sell-off as investors aim to exit their positions when they reach their break-even points.
Examining Cardano’s liquidation statistics suggests potential fluctuations could occur in the future, despite the market appearing calm at present. Moreover, numerous liquidation points are noticeable around the $0.35 mark on the graphs.
If we manage to overpower this specific level, it could trigger a series of sell-offs, contributing to a more substantial increase in prices. Yet, achieving this might encounter resistance from sellers aiming to recover their losses, particularly considering the currently low proportion of profitable addresses.
Can the bulls make a comeback?
Indeed, the question poses whether a relatively small number of profitable addresses (around 16%) could initiate a substantial price surge or bull market. Although they may constitute a minor portion, these individuals possess the financial resources and self-assurance that could potentially cause prices to rise significantly.
For a significant comeback in Cardano’s value, it’s crucial that it surpasses the $0.35 resistance barrier with confidence. Such an action wouldn’t just trigger potential margin calls (liquidations), but also increase the number of profitable addresses, thereby lessening the demand to sell.
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2024-08-17 05:43