4.3 Billion ADA Sell Wall on Cardano’s Path to $1: Details

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As a seasoned crypto investor with a knack for deciphering market trends and patterns, I must admit that the current state of Cardano (ADA) has me intrigued. The sell wall at $1 is an undeniable hurdle, but it’s not unconquerable.

Based on blockchain information, it appears that Cardano (ADA) is encountering a significant hurdle in its quest to regain the $1 value. A large obstacle, comprising approximately 4.3 billion ADA, could potentially serve as a major impediment for the cryptocurrency’s price surge beyond $1, acting as a barrier for its recovery.

Approximately 4.3 billion units of ADA have been purchased within a price range from around $0.947 to $1.09, with an average transaction price close to $1.03, as indicated by IntoTheBlock’s Global In/Out of the Money metric.

In this price range, the significant group of around 309,450 addresses that are currently experiencing losses could potentially function as resistance, considering that it has a high number of sellers according to the on-chain position of these addresses.

For Cardano, reaching and surpassing $1 might not only be a matter of psychology, but it could also be significantly impacted by this particular barrier.

Currently, at this moment, Cardano (ADA) is experiencing a 1.50% decrease over the past 24 hours, with its price standing at approximately $0.89, as a result of sustained selling in the cryptocurrency market.

If it continues to decrease, there’s a significant group of investors who might start purchasing again within the price range of $0.659 to $0.834. This is because around 238,860 addresses that bought at this price range earlier are likely to offer resistance and stabilize the market.

ADA price action

Right now, ADA is valued at approximately $0.87, representing a drop of 18.16% over the past week. Similarly, Bitcoin saw its first weekly loss in quite some time, and this downward trend seems to be echoed by other digital currencies, often called altcoins.

In the present market turbulence, investors (bulls) are making efforts to uphold the $0.86 mark close to the Daily Simple Moving Average 50. They worry that if this level is breached, Cardano (ADA) could plummet to $0.69. If even this support weakens, ADA might slide down to around $0.50.

If the price of ADA increases significantly and surpasses $1, this bullish prediction could prove correct in the short term. This upward movement would suggest that there is strong demand even at lower prices. For some time, ADA might fluctuate between $1.20 and $0.80 before resuming its trajectory toward the $2 price point.

Currently, there’s a lot of optimism about the future price of ADA, as crypto analyst Ali suggests that Cardano may be following a pattern similar to its past cycles. If this trend continues, Cardano could potentially reach a target price of around $6.

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2024-12-23 18:13