🔥Cardano faces resistance at $0.44-$0.49: Will ADA drop to $0.42?
🔻 Cardano (ADA) Decline: Cardano has lost 6.11% of its gains in the past 30 days. The Global In/Out of Money (GIOM) indicator from IntoTheBlock suggests ADA could face further declines.
📊 GIOM Indicator Insights:
Addresses in Loss: 402,720 addresses accumulated 6.39 billion ADA between $0.44 and $0.49. This cohort is currently at a loss.
Resistance Level: These holders might sell once ADA reaches these levels, potentially creating resistance and causing a retracement to $0.42 or even $0.40 if selling pressure intensifies.
📉 Current Price and Transactions: ADA is currently trading at $0.43. Despite the price decrease, large transactions on the network increased by 11.32% in the last 24 hours. However, this rise does not necessarily indicate buying pressure; it could signal token movements between wallets or sell-offs.
📉 Active Addresses: Active addresses on the Cardano network were around 35,000 on June 8 but have since decreased to 32,100. This decline indicates reduced participation in transactions, correlating with ADA's price drop.
📈 Correlation with Network Activity: Historically, ADA’s price has correlated with active addresses. For example, when active addresses reached 39,000 on June 7, ADA’s price jumped to $0.48. A further decline in active addresses could drive ADA’s price down.
🔍 Open Interest (OI): OI measures traders' open contracts linked to a cryptocurrency. For ADA, OI has decreased, indicating traders are closing positions. If this trend continues, ADA’s price might drop below $0.42.
👥 ADA Holders: The total number of ADA holders is 4.47 million, the same as in April, indicating that Cardano has struggled to attract new buyers.
Conclusion:
Cardano is facing potential declines with strong resistance levels at $0.44 to $0.49. A decrease in active addresses and open interest suggests bearish sentiment, potentially pushing ADA’s price below $0.42. Investors should closely monitor these metrics and market trends before making decisions.
