Cardano Faces On-Chain Resistance at Current Levels
Data from the market intelligence platform IntoTheBlock reveals that Cardano is currently facing significant on-chain resistance around the $0.38 mark. This means that there are a large number of investors who acquired their tokens at this price level, making it an important level for holders.
Investors tend to react to price retests of their cost basis, which can result in various moves depending on their profit-loss situation. If they were holding a profit before the retest, they might take a further gamble at that price level. On the other hand, if the retest is happening from below, they might lean towards selling to avoid potential losses.
Concentration of Investors at Different Price Ranges
The concentration of investors or addresses who acquired their coins at different price ranges can provide insights into potential market reactions. The ADA price range between $0.37 and $0.39 has a cost basis for over 319,000 addresses, indicating a significant number of investors in this range.
This range has been difficult for Cardano to break out of, potentially due to the resistance offered by sellers looking to exit at break-even prices. However, if Cardano can overcome this resistance wall, it may turn into a support zone and pave the way for higher price levels.
Current ADA Price
Cardano is currently trading around the $0.38 level, which is in the middle of the resistance wall.
Hot Take: Overcoming On-Chain Resistance Key for Cardano’s Price Movement
Cardano’s ability to break through the on-chain resistance at the $0.38 mark will be crucial for its price movement. The concentration of investors in this range indicates a significant hurdle that needs to be overcome. If Cardano can successfully mow through this resistance and establish it as a support zone, it may provide a solid foundation for further upward movement.
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