coinedition.com
Recent data from the cryptocurrency analytics platform IntoTheBlock revealed that the majority of ADA holders acquired their assets at prices higher than the current market value. According to this data, approximately 95.69% of ADA investors currently find themselves in a deficit but remain optimistic about a potential market reversal in the coming months.
On-chain data from @intotheblock shows 95.69% of $ADA holders are currently in the red, creating a tough period for the #Cardano community as prices drop. Will $ADA reach its all-time high (ATH)? Share your thoughts below. #CryptoInsights ðŸ’📉🚀 pic.twitter.com/4CQo1YPKaO
— Crust Bestie |Emmy |🥰 (@Crustbestie) September 12, 2023
It is worth noting that Cardano (ADA) is among the cryptocurrencies classified as securities by the United States Securities and Exchange Commission (SEC) in legal actions involving Binance and Coinbase. This regulatory development had a notable impact on ADA and resulted in a significant price decline. Within two weeks of the initial lawsuit against Binance, ADA’s price plummeted from $0.379 to $0.261, reflecting the broader impact of regulatory scrutiny on related assets.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price increase of 0.38%, taking its price up to $0.2473 at press time. The Ethereum-killer’s market cap stood at $8.678 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $122.382 million, following a 24-hour decrease of 11.33%. Furthermore, the price of ADA was nearer to its 24-hour low of $0.2439, while the altcoin’s daily high stood at $0.2513.
The daily positive performance was not enough to overcome the price drop that ADA experienced throughout the past 7 days. At press time, the altcoin’s price was still down 3.34% for the past week of trading.
Cardano (ADA) Technical Overview
Over the past few days, ADA’s price had attempted to breach the $0.2375 support level. This sell pressure proved to be too overwhelming for bulls as sellers were able to drag the altcoin’s price down to a low of $0.2367 on Monday. Bulls were, however, able to step in to close the 4-hour candle back above the significant level.
Just 4 hours later, bears entered into round 2 with bulls and were able to breach the support level yet again. Similar to the previous attempt, buyers had identified the price drop as an opportunity to stock up on ADA, resulting in the price reclaiming the support level.
Thereafter, bulls continued to buy into ADA, boosting its price to a high of $0.2527 yesterday morning. This increase in ADA’s value was short-lived, however, as it declined between yesterday evening and the early hours of today. It was in the last 8 hours that ADA’s price had started climbing again. If this bullish momentum continues, the cryptocurrency’s price could rise to as high as $0.2645 in the coming week. However, if traders take profit or begin exerting sell pressure on the altcoin’s price again, then it may be at risk of retesting the aforementioned $0.2375 support level.
Zooming out to the daily chart for ADA/USDT revealed that technical indicators favored sellers at press time. Firstly, the 9-day EMA line was positioned below the 20-day EMA line, which showed that the altcoin was still in a bearish short-term trend. Furthermore, a significant bearish technical flag was on the cusp of being triggered on ADA’s daily chart.
The daily MACD line was attempting to cross below the MACD Signal line at press time. If these two technical indicators cross, it will signal a continuation in ADA’s current negative trend. Should these technical flags be validated in the coming 24-48 hours, then the Ethereum-killer’s price could drop to the previously-mentioned $0.2375 support level in the coming few days.
On the other hand, if ADA’s price is able to close a daily candle above the 9-day EMA line at around $0.2506, then the bearish thesis will be invalidated. In this scenario, the altcoin’s price may continue to climb to ultimately flip the $0.2645 resistance level into support. If this potential buy support persists, ADA’s price could even rise to as high as $0.2920.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
Read More Crypto Price Predictions:
- XRP Price Prediction 2023-2030: Will XRP Price Hit $1 Soon?
- Cardano Price Prediction 2023-2030: Will ADA Price Hit $1.5 Soon?
- Cronos Price Prediction 2023-2030: Will CRO Price Hit $0.25 Soon?
- Dogecoin Price Prediction 2022-2030: Will DOGE Price Hit $0.35 Soon?
- Terra Luna Classic Price Prediction 2023-2030: Will LUNC Price Hit $0.0003 Soon?