Cardano (ADA) investors expecting US$1.87 billion in revenue may be expecting too much
Cardano prices may fall short of US$0.39 as GIOM has identified a key supply zone that could prevent further price gains. This growth has rekindled hopes that the altcoin could generate returns for investors who purchased the #token at a higher value than its current price.
While optimism surrounds the potential growth of #ADA , technical and on-chain data suggests that such ambitious profit targets may not be realistic. The reasons for this are as follows.
the recent rise in #Cardano has prevented the price from returning to $0.30; it is now trading at $0.36, according to the Global Investing/Outstanding Money Index (GIOM), which has accumulated ADA between $0.36 and $0.39, but is holding it at a loss.
GIOM categorizes addresses and volume based on yield GIOM categorizes addresses and volume based on yield, which allows it to identify resistance and support lines that can either accelerate or derail an uptrend.
As a general rule, the higher the volume (cluster), the stronger the support or resistance. As shown in the chart below, the 373,000 addresses that have accumulated 5.21 billion ADAs at an average price of $0.37 are underfunded. This is more than the profitable holders of ADA bought at around $BTC Given the current situation, it is unlikely that ADA will reach $0.39 in the short term due to this supply zone. Therefore, some of these Cardano investors may not be able to achieve their desired profit level.
Another indicator that points to a decline in Cardano's price is Bull Bear Power (BBP). BBP compares the strength of buyers (bulls) to the strength of sellers (bears). If the indicator is green, then the buyers #win , and if it is red, then the sellers win.
On the daily chart there is a small green histogram band.
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