Cardano (ADA) is currently facing a significant hurdle on its path to the $1 mark, triggered by a large sell wall amounting to 4.3 billion ADA. This may serve as a key barrier for the cryptocurrency's price recovery.
Current ADA Price Situation
At the time of writing, Cardano (ADA) was trading down 1.50% to $0.89 amid continuous selling in the crypto market. ADA is currently trading at $0.87, marking an 18.16% weekly decline. This trend is also mirrored by other cryptocurrencies, including the leading Bitcoin.
Analysis of the $1 Barrier
According to IntoTheBlock's Global In/Out of the Money indicator, a total volume of 4.3 billion ADA was bought in the range between $0.947 and $1.09, with an average price of $1.03. The large cluster of 309,450 addresses currently losing money in this range might act as resistance, given the high concentration of sellers based on on-chain positions.
Forecasts and Possible Scenarios
Bulls are attempting to defend the $0.86 level near the daily SMA 50, fearing that failure might cause ADA to fall to $0.69 and potentially to $0.50. If the price rises and breaks above $1, it could signal strong demand at lower levels and possible consolidation between $1.20 and $0.80 before heading towards $2. Optimism remains, with some analysts predicting a potential target of $6 for Cardano if history repeats itself.
Cardano is facing significant challenges on its price recovery path, but retains growth potential backed by strategic buyers and possible market changes.
