ADA faces strong resistance after whale consolidation
- Cardano is up almost 18% in the last 48 hours.
- Now ADA needs a breakout of $1.10 to continue moving forward.
- Failure to break the resistance could trigger a sell off.
Cardano has reached a key resistance level after a strong rally over the past few days. As buying pressure mounts, ADA may be preparing for a major breakout.
ADA is ready to go further
Cardano has gained nearly 18% over the past two days after a spike in buying pressure.
Big investors seem to have rushed to add ADA to their portfolios. Santiment holder tracking indicator shows that a large number of buy orders have been executed in the last 48 hours. According to the background, the average ADA whale has increased its population significantly.
Addresses holding between 100,000 and 1 million ADA have added more than 16 million tokens to their holdings since February 27th. This indicates strong demand at lower levels. If the buying pressure is sustained, Cardano will be able to go further and generate a significant profit.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model estimates that $1.10 plays a significant role in Cardano’s trend. Transaction history shows that this is one of the biggest hurdles to Cardano’s offering. Here, more than 450,000 addresses bought more than 7.2 billion ADA.
This resistance wall may absorb some of the recent buying pressure. However, if Cardano can break it, the price can move towards the next key hurdle at $1.34.
Source: Into the block
Although Cardano has performed well over the past few days, it still needs to stay above $0.90. Failure to hold this level could cause panic among investors and potentially trigger a sell-off. In this case, ADA can drop to $0.85 or even $0.50.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
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