Cardano Price Prediction: ADA is Bearish
Cardano (ADA) is having a challenging time as its price hovers around $0.33. After breaking past an upward trendline earlier, ADA is now struggling to move higher, facing resistance thats slowing it down. In this Cardano Price Prediction article, well explore the factors affecting Cardanos price and discuss why the market sentiment might be turning bearish for ADA. Is there a chance for a recovery, or could we see the price drop even further?
How has the Cardano (ADA) Price Moved Recently?
Cardano (ADA) is currently priced at $0.336603, with a 24-hour trading volume of $329.51 million, a market cap of $11.77 billion, and a market dominance of 0.50%. Over the past 24 hours, ADAs price has risen by 0.85%.
The highest price Cardano ever reached was $3.10 on September 2, 2021. On the other hand, its lowest recorded price was $0.01 7354 on October 1, 2017. The lowest point since its all-time high was $0.234392 (cycle low), and the highest price since that cycle low was $0.806108 (cycle high). Currently, the sentiment around Cardanos price prediction appears bearish, with the Fear & Greed Index indicating a level of 69 (Greed).
Cardano has a circulating supply of 34.96 billion ADA out of a maximum supply of 45 billion ADA. The annual supply inflation rate is 3.36%, meaning 1.14 billion ADA were added to circulation over the past year.
Why Cardano (ADA) Price is Struggling?
ADAs price struggles can be attributed to a strong resistance zone created by a large number of holders at the current price levels. Data from IntoTheBlocks In/Out of the Money Around Price (IOMAP) shows that around 119,360 addresses hold approximately 2.27 billion ADA tokens with an average purchase price of $0.336.
These holders, who bought between $0.332 and $0.341, may likely sell their tokens at these levels to break even. This selling behavior establishes a significant barrier, as every time ADA approaches this price range, the selling pressure increases, preventing any substantial price gain.
From a technical perspective, the $0.341 resistance point aligns closely with the IOMAP analysis, emphasizing the importance of this zone as a potential reversal point. For ADA to move beyond this, it must overcome this persistent resistance, which is difficult in the current market environment.
Furthermore, declining trader interest and shrinking liquidity on the ADA blockchain are worsening its outlook. According to Artemis Terminal, ADAs daily trading volume has dropped significantlyfrom $545 million on Friday to $197 million by Sundayreaching the lowest point since early October.
This decline, which has been ongoing since mid-February, reflects a loss of momentum and reduced market participation, making it harder for ADA to gather the strength needed to push past the resistance levels.
So , ADAs price is under pressure due to a combination of technical barriers and declining trading activity. The reduced liquidity and increasing sell pressure from holders at breakeven levels suggest that ADA may continue to be trapped in this range unless there is a substantial shift in market dynamics or a surge in new buying interest.
Read more: https://cryptoticker.io/en/cardano-price-prediction-ada-is-bearish/
Text source: CryptoTicker
