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.

Share this article:

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.

Share this article:



Source link

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...