- Cardano (ADA) faces significant resistance as it aims to reach $1, encountering challenges amidst a broader market sell-off.
- The next resistance levels lie within the range of $0.7 to $0.72, with substantial ADA holdings that could further contribute to selling pressure.
- Analysts foresee Cardano potentially reaching highs of $5 or even $7.5 during this cycle, indicating significant growth potential.
Cardano (ADA), one of the top ten cryptocurrencies by market capitalization, is currently facing significant resistance at various levels as it aims to reach the coveted $1 milestone. According to on-chain data, Cardano’s journey to this target is fraught with challenges, despite the overall bullish sentiment in the crypto market.
Since reaching a yearly high of nearly $0.8 in mid-March, Cardano’s price has struggled, dropping to a low of $0.58 a week later and currently trading at around $0.647. A broader market sell-off, which has hindered ADA’s growth, is largely responsible for this decline.
The recent price action has pushed Cardano below several stiff resistance levels, particularly in the range between $0.65 and $0.70. Data from IntoTheBlock reveals that investors have purchased a combined 2.14 billion ADA ($1.36 billion) within this price range.
These investors, especially if they include bearish buyers who are comfortable exiting their positions at breakeven or with mild profits, may provide strong selling pressure, making it crucial for Cardano bulls to overcome this hurdle in order to drive the price higher in 2024.
Beyond this immediate resistance, the next levels lie within the ascendancy channel between $0.7 and $0.72. At this level, an estimated 108,000 addresses have acquired 1.42 billion ADA ($908 million), potentially adding to the selling pressure.
Is there hope for Cardano investors?
Despite these challenges, there is a glimmer of hope for Cardano investors. The overall crypto market sentiment remains largely bullish, with the anticipation of historical Bitcoin halving and the potential continuation of the bull run. If this scenario plays out, Cardano, given its position among the top cryptocurrencies, could be a significant beneficiary.
Many analysts predict that Cardano could reach as high as $5 during this cycle, surpassing its previous all-time high by a considerable margin. Some even suggest a potential high of $7.5, representing an astonishing 1,000% increase from Cardano’s current price.
As Cardano navigates through these challenges and strives to reach the $1 milestone and beyond, investors and enthusiasts alike will be closely monitoring its performance. Cardano’s journey promises to be exciting, albeit not without its share of obstacles, thanks to its strong foundation and potential for growth in the current market climate.
