- The two billion ADA demand wall might trigger a bearish reversal for Cardano, potentially pushing the ADA price back up.
- ADA’s current price range between $0.285 and $0.301 is where significant buying activity, and therefore support, is anticipated.
Cardano’s ADA, a significant player in the crypto market, has seen a persistent decline since July 14th, marking four days of negative trading after reaching a peak of $0.38. The steady fall of ADA has raised concerns among investors, but a hidden lifeline might hold the key for a bullish reversal: a robust demand wall of two billion ADA.
The Prospect of ADA’s Uptrend
This potential for resurgence followed a notable price spike from July 13th to 14th, spurred by anticipation that Cardano might sidestep potential SEC regulatory threats in light of Ripple’s recent triumph. The aftermath, however, witnessed an expected profit-taking sell-off, casting ADA into a consecutive streak of red days. As of writing, ADA has decreased by 3.05% in the past 24 hours, standing at $0.305.
Despite this downward trend, on-chain data from IntoTheBlock points to a potential counterforce: a robust demand wall of two billion ADA that might impede the bears’ advance. This demand wall has been noticed at ADA’s current support level, aligning with the price range of $0.285 to $0.301. It’s at this price level that 62,400 addresses procured 2.08 billion ADA at an average price of $0.292.
Analysts anticipate an increase in buying activity at this price range. The presumption stems from the likelihood of addresses that previously bought at these levels stepping in to provide support.
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Technical Indicators and Market Equilibrium
From a technical standpoint, the demand wall aligns slightly beneath the daily moving average of 50 (MA 50) that currently sits at $0.301. Given that the MA 50 price level has previously proven a stumbling block for ADA’s price, the bulls will have to muster considerable force to convert this level into a supportive base.
The relative strength index (RSI) hovers close to the mid-50 mark, signaling an impending consolidation. A market equilibrium, wherein bulls and bears strive for dominance, is on the horizon.
If the bears succumb and the ADA price finds traction for an upswing from its present levels, the bulls might aim for a retest of the $0.38 threshold. Conversely, a break and close below $0.30 could tilt the scales in favor of the bears. A significant support level is predicted beneath the $0.30 demand wall, where 439,220 addresses procured 6.12 billion ADA at an average price of $0.203.
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