ADA hasn't tested key support yet but bulls still aim for $1
ADA still targets $1 despite not testing critical support
Cardano (ADA) is going through a difficult time as its price has dropped below $1 since the beginning of December. This prolonged decline has made investors skeptical and uncertain. sure about the resilience of this cryptocurrency.
Current price situation
Currently, ADA price fluctuates around the critical support level at $0.87. Sustaining above this support level is essential for ADA to consider a recovery and reach the $1 mark, a milestone both psychological and technical. If this support fails to hold, ADA could fall to $0.77, continuing the bearish trend and increasing investor skepticism.
Investor participation
The number of active addresses on the Cardano network has plummeted, reflecting growing skepticism in the community. This trend shows that many investors are withdrawing, leading to reduced liquidity and making it more difficult for ADA price recovery. The continuous price decline since December has created an atmosphere of caution in the market, especially with the lack of strong trading activities from short-term investors.
Recovery outlook
Despite many challenges, some long-term investors (LTH) still maintain their positions in the market. According to data from the MVRV (Market Value to Realized Value) index, many long-term investors are seeing higher returns than short-term investors. This could provide some momentum for ADA to recover, as long as LTHs keep their participation and do not withdraw capital.
Conclude
Although Cardano is facing many challenges and uncertainty is still present in the cryptocurrency market, the desire to reach $1 is still the goal of many investors. Maintaining and surpassing current support levels is critical to recovering from recent losses, leading to renewed community trust.
