Cardano (ADA) is facing a significant sell wall as it attempts to reclaim the critical $1 level. This wall, coupled with market conditions, is creating a barrier that is making it difficult for ADA to recover.
The sell wall in question contains 4.3 billion ADA tokens, which were bought at prices between $0.947 and $1.09, with many addresses trading at prices between $0.947 and $1.09. According to data from IntoTheBlock, around 309,450 addresses are currently losing money, creating strong resistance at $1.
Cardano’s progress towards $1 is being hindered by a major sell wall, which consists of 4.3 billion ADA tokens bought between $0.947 and $1.09, with an average purchase price of $1.03. This creates a significant hurdle that ADA must overcome in order to effectively rally.
Investor behavior is a major factor in ADA’s price movements. The fact that there are currently 309,450 losing addresses could cause these investors to resist selling without recouping their losses. This could lead to supply building up around the sell wall, limiting price growth. Traders may be reluctant to open new positions due to concerns about a potential sell-off.
According to the latest trading data, ADA is trading at $0.89, down 1.50% in 24 hours. This decline is in line with broader market trends that have negatively impacted Bitcoin and other altcoins, reinforcing the overall bear market sentiment.
According to market analysts, critical support levels for ADA are between $0.659 and $0.834, where 238,860 addresses have bought. If the price falls to these levels, a pivot point may be reached where buying interest may revive. However, if ADA falls below $0.86, there is a risk of falling to lower levels such as $0.69. If the downward momentum continues, $0.50 levels may also be on the agenda.
Despite the current market conditions, there are also optimistic views about Cardano’s future. According to analysts, ADA may first consolidate between $1.20 and $0.80, then attempt to reach $2 levels.
Crypto analyst Ali draws attention to Cardano’s past cycles and suggests that if it follows these cycles, ADA could rise to $6 in the future. However, this prediction is speculative and depends on market conditions. If ADA successfully breaks above the current resistance levels, the price could increase due to the influence of the bull market.
