Cardano Struggles Below $0.3550 Support: Whats Next For ADA?
- Cardano (ADA) struggles below $0.3550 support, trading at $0.3385.
- Analysts warn of potential drop to $0.22-$0.26 range if $0.33 support fails.
- 77.50% of ADA holders are out of money, potentially creating resistance at higher levels.
Cardano (ADA) finds itself at a critical juncture as it grapples with persistent bearish pressure, struggling to maintain key support levels. The cryptocurrencys recent price action has drawn significant attention from analysts and investors alike, particularly following its test of the $0.3680 resistance on October 7.
Despite this brief show of strength, ADA has since experienced a notable decline, mirroring the broader markets downward trend.
TradingView analyst Siyamakbayrami highlights a descending weekly trend for Cardano, tracing its trajectory from a peak of approximately $0.80 in March to its current consolidation phase.
This period of range-bound trading between $0.33 and $0.45 reflects market indecision and could serve as a pivotal moment for ADAs future price action. The analyst warns that a failure to hold the $0.33 support could potentially trigger a severe decline to the $0.22-$0.26 range, levels not seen since early 2023.
77.5% Cardano holders in losses
The Global In/Out of the Money analysis provides additional context to ADAs market dynamics, revealing that 77.50% of addresses holding Cardano are currently out of the money.
This concentration of underwater positions could create significant resistance between $0.35 and $0.54, as holders may seek to exit their positions to recover losses. This selling pressure poses a substantial challenge to any potential upward movement for ADA in the near term.
Despite the prevailing bearish sentiment, crypto analyst Ali Martinez offers a contrarian perspective, suggesting that Cardano investors may be experiencing the depression phase of the market cycle.
Historically, this phase of extreme pessimism often precedes market bottoms and could present a unique buying opportunity for long-term investors.
Martinez posits that accumulation during this downturn could yield substantial returns as the market potentially transitions into a disbelief phase, signaling the start of a new bullish cycle.
Read more: https://thenewscrypto.com/cardano-struggles-below-0-3550-support-whats-next-for-ada/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
