Cardano (ADA) is under significant selling pressure, trading down by 6.46% at $0.3498, with investors hoping for a recovery above $0.37, bringing a large number of investors back into profitability.
Amid the broader market correction, Cardano’s native cryptocurrency ADA ADA $0.69 24h volatility: 2.5% Market cap: $25.02 B Vol. 24h: $760.24 M is also facing strong selling pressure. As of press time, the ADA price is trading down by 6.46% at $0.3498 with a market cap of $12.2 billion.
Cardano (ADA) price has faced strong pressure at $0.40 as bulls have been unable to overcome these levels in the past few months. Despite this, the Cardano bulls continue to have hopes that present an opportunity for traders and investors alike.
However, the recent downturn in the Cardano price has resulted in a major loss in the profitability of nearly 3.31 billion ADA tokens. As per the Global In/Out of the Money (GIOM) metric, investors had acquired this supply of $1.1 billion in the price range between $0.35 and $0.37. However, as of press time, this group of investors sits underwater and as the ADA price recovers above $0.37, it could return to profitability.
Photo: IntoTheBlock
Once the ADA price approaches this crucial level, it will be crucial to gauge the investor sentiment to determine the future trajectory of the altcoin. A breakout above $0.37 would boost profitability for ADA holders and strengthen investor confidence, potentially driving additional price gains.
Despite the recent 11% decline, Cardano’s realized profit/loss indicator suggests that investors are staying composed, as the lack of significant spikes points to minimal panic selling.
This stability is crucial, indicating that ADA holders are opting to “HODL” rather than sell at a loss. Such investor behavior is encouraging, as it signals confidence that Cardano’s long-term potential remains intact.
Cardano (ADA) Price Action Ahead
As of the press time, the ADA price is trading 3.3% down at $0.3538 with a market cap of $12.36 billion. The next key support is at $0.34 defending which can push the ADA price once again upwards to the resistance of $0.37. A recovery will open the door for further upward momentum that will allow Cardano to reverse its recent losses.
If ADA successfully turns $0.37 into a support level, the 3.31 billion ADA tokens purchased between $0.35 and $0.37 would become profitable. This shift could spark renewed optimism among investors, easing selling pressure and fueling a sustained price rally.
Photo: TradingView
If Cardano fails to break past the $0.37 resistance, it could struggle to build upward momentum, leaving the price stuck below this key level. A decline below the $0.34 support would invalidate the bullish scenario, potentially leading to deeper losses and deterring short-term traders.
next