Investors in Cardano are either cashing in their profits or selling at breakeven points as the current resistance level is posing challenges for the price.
Cardano faces a formidable obstacle as it stabilizes within the $0.50 to $0.53 range. This zone has become a stronghold of resistance not just due to historical patterns but also because numerous holders are looking to sell and break even, as shown by the clustering of active addresses in this price range.
Cardano Faces Tough Resistance from Profit-Taking Holders
The latest data indicates a significant concentration of addresses at a profitability level, suggesting that any upward movement towards this range could encounter strong selling pressure. This situation typically arises when traders, who previously bought at these levels, aim to exit their positions without incurring losses as the price rebounds to their entry points.
ADA/USDT chart by TradingView
This clustering of addresses at break-even levels poses a formidable challenge for Cardano’s price, particularly at the $0.50 to $0.53 range. Unlike traditional resistance levels based on historical patterns or order books, this resistance is indirect but incredibly strong, driven by the collective intention of numerous holders seeking to exit at their break-even points.
To break through this resistance, buying pressure must outweigh the selling orders and sustain upward momentum. However, achieving this will require a significant catalyst or shift in market sentiment to attract new capital and persuade existing holders to remain invested for potential further gains.
Cardano Faces Key Resistance at $0.50 to $0.53 Range
The chart analysis suggests that if ADA successfully breaks through this resistance zone, the next significant level to monitor would be the $0.55 resistance, which has been notable for previous price reactions. Conversely, if selling pressure outweighs buying interest, support levels may be observed around $0.47, with additional support at $0.42, where the market previously demonstrated strong buying activity.
While the current price level presents a significant challenge for Cardano, the resistance formed by the break-even points of numerous holders makes it a formidable obstacle to overcome.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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