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.
