As an experienced analyst, I believe that Cardano’s current situation is precarious, with 2.5 billion ADA at risk of significant losses if the price fails to hold above the critical support level. The selling pressure we have seen since the start of the week has brought ADA to a key price range where a substantial number of investors have bought in.
Recently, Cardano has reached a pivotal point, as approximately 2.5 billion ADA are exposed to potential risk due to the cryptocurrency’s price struggling at a crucial support threshold. The downward trend for ADA began earlier this week, and it appears poised for its fourth consecutive daily decrease.
As an analyst, I would observe that the recent price declines have brought us to a pivotal point for Cardano’s native token, ADA. At this juncture, approximately 2.5 billion ADA are currently being held in significant numbers of Cardano wallets.
Based on IntoTheBlock’s data, approximately 2.51 billion ADA coins were purchased by around 212,010 individual wallets at prices ranging from $0.426 to $0.461, with an average transaction price of $0.447.
I’m observing that ADA is approaching the lower boundary of its price range at around $0.426, having dipped 0.38% over the past day and now trading at $0.432.
If the price of ADA coins fails to stay above this important level of around 2.5 billion coins, the value of these coins owned by numerous investors could decrease significantly.
If the price of ADA dips just below its current support level of around $0.65, it may lead to a test of the $0.40 support. This downward shift could create buying chances for investors, but it might also be problematic for those who currently own the 2.5 billion ADA coins.
The result of the ongoing struggle between bulls and bears could potentially influence the cost of ADA. If the price consistently rises above this significant level, ADA may encounter its subsequent resistance levels around $0.46 and $0.51 based on on-chain analysis.
As a crypto investor, I believe that if ADA‘s price consistently rises above its daily moving average, it could be an early indication of the bullish trend taking hold.
In a wider perspective, the cryptocurrency market is experiencing a significant sell-off as investors brace for the Federal Reserve’s (Fed) interest rate decision. Although the FOMC is predicted to keep rates unchanged, growing apprehensions among investors suggest that the central bank may not reduce rates this year. Consequently, assets like cryptocurrencies that are sensitive to interest rate changes might face negative consequences.
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2024-05-01 17:31