Cardano Is Under Significant Buying Pressure:

Key Takeaways:

  • Cardano appears to have found a strong foothold at $ 1.
  • Meanwhile, investors have been to their ADA holdings.
  • If the buying pressure persists, ADA could rise toward $ 1.60.

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Investors appear to be accumulating ADA at a discount. On-chain data shows that buying pressure is at all-time highs while Cardano has built a stiff support level that could prevent further losses.

Cardano Looks Bullish Above $ 1:

Cardano appears to be gathering upward pressure for a breakout.

ADA has suffered a steep downturn since it reached an all-time high of $ 3.16 on Sep. 2, 2021. The smart contract blockchain saw its market value drop by nearly 71% due to a significant spike in profit-taking.

However, sidelined investors now appear to be taking advantage of the downswing to accumulate tokens at a discount.

On-chain data from Santiment shows that the number of addresses holding between 10,000 and 1 million ADA has increased by 15,000% since Dec. 15, 2021. Roughly 3,900 sizeable wallets have been created since then, signaling a spike in interest among retail investors.

Cardano Holders:
Source: Centimeter:

The significant increase in buy orders has helped Cardano create a stable support wall. IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model shows that more than 340,000 addresses have previously acquired 7.65 billion ADA at a price of around $ 1.

The demand zone could have the strength to absorb any spike in selling pressure and allow prices to rebound toward $ 1.20 or even $ 1.60.

Cardano Transaction History:
Source: IntoTheBlock:

While the odds appear to favor the bulls, any significant move rests on the $ 1 support level. A decisive daily close below this barrier could create panic in the market, encouraging investors to reduce the size of their positions. Under such circumstances, Cardano could capitulate toward $ 0.66 to mark the end of the downtrend.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

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