A significant barrier has been identified in Cardano’s (ADA) path toward reclaiming the $1 price level. On-chain data has revealed a sell wall consisting of 4.3 billion ADA, presenting a formidable challenge to sustained price recovery.
The data, provided by IntoTheBlock’s Global In/Out of the Money indicator, indicates that these 4.3 billion ADA were acquired within the price range of $0.947 to $1.09, with an average cost basis of $1.03. This zone comprises approximately 309,450 wallet addresses, many of which may seek to sell at or near their acquisition cost to minimize losses.
The Implications of the Sell Wall
This massive concentration of sell-side pressure forms both a technical and psychological resistance zone for ADA. Overcoming this resistance is crucial for Cardano to achieve and maintain a price above $1. Until the sell wall is cleared, progress may remain limited.
Current Price Movements and Market Trends
As of now, Cardano is trading at $0.919, reflecting a weekly decline of 13.99%. Broader market conditions have also contributed to this downturn, with Bitcoin registering its first weekly loss in several weeks—a trend that has negatively impacted alternative cryptocurrencies like ADA.
Support near $0.86 is being tested, coinciding with Cardano’s 50-day Simple Moving Average (SMA). Analysts caution that a breakdown below this level could lead to additional losses.
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Breaking Resistance and Potential Consolidation
A bullish scenario could emerge if ADA successfully surpasses the $1 mark. Such a move would signal strong buyer interest and could shift the short-term outlook to a more optimistic trajectory. In this case, consolidation between $0.80 and $1.20 might occur before any attempt to climb toward $2.
Crypto analyst Ali has noted that Cardano’s current price behavior mirrors patterns observed in previous market cycles. He predicts that if historical trends repeat, ADA could achieve a long-term price target of $6.
Related Article: Cardano (ADA) Faces Decline Risks Amid Bearish Market Trends
Cardano’s price action remains at a critical juncture, with both bullish and bearish scenarios in play. The sell wall of 4.3 billion ADA between $0.947 and $1.09 presents a formidable challenge, delaying ADA’s recovery to $1. Nevertheless, strong support levels below $0.834 may provide a foundation for price stabilization and future growth.
Careful monitoring of market conditions, support zones, and resistance levels will be essential for investors navigating this uncertain landscape.
