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According to on-chain data, Cardano ($ADA) is facing a significant challenge on its path to reclaiming the $1 mark, with a sell wall in its path. This sell wall, representing a substantial cluster of 4.3 billion $ADA, could act as a key barrier for the cryptocurrency’s price recovery past $1.
According to IntoTheBlock's Global In/Out of the Money indicator, 4.3 billion $ADA in total volume were bought in the range between $0.947 and $1.09, at an average price of $1.03.
The large cluster of 309,450 addresses currently losing money in this range might act as resistance, given that it is a price range with a high concentration of sellers based on addresses’ positions on-chain.
For Cardano, this means the path to and beyond $1 might not just be psychological but might also be heavily influenced by this hurdle.
At writing time, Cardano ($ADA) was trading down 1.50% in the last 24 hours to $0.89 amid the continuous selling on the crypto market.
If it declines further, a large cluster in the money between $0.659 and $0.834 is where buying activity is expected to pick up, as the 238,860 addresses that had previously bought at this price range are likely to provide support.
$ADA price action
$ADA is currently trading at $0.87, marking an 18.16% decline weekly. Bitcoin also experienced its first weekly decrease in weeks, a pattern mirrored by alternative cryptocurrencies, referred to as altcoins.
Amid the current uncertainty on the market, bulls are attempting to defend the $0.86 level near the daily SMA 50, fearing that failure might trigger $ADA to fall to $0.69. If this support also cracks, $ADA might drop to as low as 0.50.
This bearish outlook will be disproved in the near term if the price rises and breaks above $1. This will signal a strong demand at lower levels. $ADA may consolidate between $1.20 and $0.80 for a little while before charting its course toward the $2 mark.
Meanwhile, optimism remains on $ADA's price. According to Ali, a crypto analyst, Cardano ($ADA) is following an eerily similar pattern to its previous cycle. If history repeats itself, Cardano's potential target is predicted to be $6.