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- ADA faces a challenging road ahead, with only 35% of investors in profit despite a bullish market.
- Cardano’s ADA struggles to breach the $0.38 resistance, a crucial level for its market performance.
- ADA’s stochastic RSI suggests potential undervaluation, while Keltner Channel bands indicate a downtrend with consolidation.
Recent insights from blockchain analytics firm IntotheBlock have brought a concerning scenario for Cardano (ADA) enthusiasts to light. Despite a generally bullish market, only 35% of ADA investors are in the green. This percentage, notably lower compared to other top blockchain protocols, highlights the unique hurdles ADA stakeholders face.
Despite recent market surges, Only 35% of $ADA holders are in profit, significantly lower than other top protocols. On-chain data reveals a key resistance at $0.38, with 7.19B $ADA acquired here. Clearing this level may reduce resistance, potentially boosting holder profits. pic.twitter.com/I2IPBltUN6— IntoTheBlock (@intotheblock) November 30, 2023
Moreover, IntotheBlock’s analysis points out a significant resistance level at $0.38 for ADA. Around 7.19 billion ADA tokens purchased at this price point now represent a substantial obstacle to the cryptocurrency’s value ascent. Surpassing this threshold could be pivotal for ADA’s market performance and investor profitability.
Cardano’s Market Position and Performance
According to CoinStats, ADA is currently trading at $0.3796, up 0.16% from its intraday low of $0.3788. The currency’s 24-hour trading volume is $272 million, representing a 3.59% increase in activity. However, the price of ADA has dropped by more than 3% in the last week, showing a downward trend in its performance.
In the past day, however, the market capitalization of the ADA increased by 0.16% to $13,403,012,713, indicating that, despite the recent price drop, there is still substantial investor interest and support for Cardano.
If the bullish momentum recovers and the $0.38 resistance level is breached, a positive breakout might occur, leading to more price appreciation for ADA. However, if the downward trend continues and the $0.3788 support level is breached, the next support level to monitor for ADA is around $0.35.
ADA/USD 24-hour price chart (Source: CoinStats)
ADA/USD Technical Analysis
The stochastic RSI swings in the oversold region with a rating of 13.26 on the ADA/USD 24-hour price chart, indicating that the current price of ADA may be undervalued and could experience a rebound soon. Furthermore, the low stochastic RSI rating suggests that ADA may be oversold, attracting buyers and leading to a potential price gain.
The Keltner Channel bands are moving downward, with the upper, middle, and lower bands touching $0.410, $0.373, and $0.336, respectively. This pattern indicates that ADA is now in a downtrend and may see further selling pressure. The price action movement near the middle band implies that ADA is consolidating and may be ready for a significant breakout.
ADA/USD 24-hour price chart (Source: TradingView)
In conclusion, Cardano (ADA) faces challenges with a low percentage of investors in the green and a significant resistance at $0.38. However, the oversold indicators suggest a potential rebound, and a breakout could be on the horizon.
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