Coinspeaker
Cardano Investors Remain Optimistic Despite 11% ADA Price Decline
In light of the recent market corrections, Cardano’s native cryptocurrency ADA
ADA
$0.35
24h volatility:
1.6%
Market cap:
$12.39 B
Vol. 24h:
$456.73 M
is encountering significant selling pressure. At the time of writing, the ADA price has decreased by 6.46% to $0.3498, with a market cap standing at $12.2 billion.
The price of Cardano (ADA) has struggled at the $0.40 mark, with bulls failing to break through this barrier over the past few months. Nonetheless, Cardano bulls maintain their optimism, presenting opportunities for both traders and investors.
However, the recent decline in Cardano’s price has led to considerable losses for nearly 3.31 billion ADA tokens. According to the Global In/Out of the Money (GIOM) metric, investors had acquired this supply at a value of $1.1 billion between the price range of $0.35 and $0.37. Currently, this group finds themselves at a loss, but if the ADA price rebounds above $0.37, their investments could return to profitability.
Photo: IntoTheBlock
As the ADA price nears this crucial level, assessing investor sentiment will be vital in forecasting the future direction of the altcoin. A breakout above $0.37 would enhance profitability for ADA holders and bolster investor confidence, potentially catalyzing further price increases.
Despite the recent 11% drop, Cardano’s realized profit/loss indicator implies that investors are remaining calm, as the absence of significant selling spikes indicates minimal panic among them.
This stability is significant, reflecting that ADA holders prefer to “HODL” rather than sell at a loss. Such behavior from investors is promising, suggesting confidence in Cardano’s long-term prospects.
Cardano (ADA) Price Movement Prospects
At the time of writing, the ADA price is 3.3% down at $0.3538, with a market cap of $12.36 billion. The next critical support level is at $0.34, and defending this level could allow the ADA price to rise again towards the resistance at $0.37. A recovery from here would pave the way for further upward momentum, enabling Cardano to recover from recent losses.
If ADA manages to establish $0.37 as a support level, the 3.31 billion ADA tokens acquired between $0.35 and $0.37 would turn profitable. This transformation could instill renewed optimism among investors, reducing selling pressure and possibly leading to a sustained price rally.
Photo: TradingView
If Cardano fails to surpass the $0.37 resistance, it may struggle to gain upward momentum, resulting in the price stagnating below this crucial level. A drop below the $0.34 support could negate the bullish outlook, potentially leading to greater losses and dissuading short-term traders.
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Cardano Investors Remain Optimistic Despite 11% ADA Price Decline
