According to U.Today, Cardano is currently at a critical juncture, with 2.5 billion ADA potentially at risk as the price struggles with a crucial support level. The cryptocurrency has experienced selling pressure since the beginning of the week, marking its fourth consecutive day of losses. These declines have brought ADA to a key price range, where a significant number of Cardano addresses are holding 2.5 billion ADA.
Data from IntoTheBlock reveals that 2.51 billion ADA were purchased by 212,010 addresses at an average price of $0.447, between $0.426 and $0.461. Currently, ADA is trading closer to the lower end of this range at $0.426, down 0.38% in the last 24 hours to $0.432. This precarious position could potentially devalue the 2.5 billion ADA coins held by a large number of investors if the price fails to maintain above this critical threshold.
A drop below this key range could potentially trigger a test of the support at $0.40. While this could present buying opportunities for investors, it also poses a risk for those currently holding the 2.5 billion ADA. The outcome of the battle between the bulls and bears could have implications for the ADA price. A sustained move above this key price range could bring ADA to its next resistance range between $0.46 and $0.51, according to on-chain data.
In a broader context, the cryptocurrency market is facing a sell-off as investors await the Federal Open Market Committee's (FOMC) decision on interest rates. The FOMC is not expected to make any changes to interest rates, but investors are increasingly concerned that the central bank might not drop rates this year, which could negatively impact interest rate-sensitive assets such as cryptocurrencies.