In the past three days, Cardano’s ADA has surged by over 17%, capturing widespread attention for its breakout from the descending triangle pattern and crushing a significant horizontal resistance level. Despite this bullish movement, ADA is currently experiencing a price correction, ranging between $0.54 and $0.56.
Why ADA price is struggling?
Additionally, this strong resistance level poses an obstacle for Cardano’s ADA. According to an on-chain analytics firm, IntoTheBlock, this is the same level where nearly 50,000 addresses hold over 1.97 billion ADA tokens with an average price of $0.54. However, the world’s 8th biggest cryptocurrency is still bullish, and if ADA breaches this obstacle then in the coming day we may see a price of $0.68.
Besides the potential upside momentum, if we look at ADA’s performance in 2023, it doubled its investors’ money in just 90 days during the bull run from October 2023 to December 2023, before the approval of the spot Bitcoin ETF (Exchange Traded Fund). During the bull run, Cardano’s ADA price surged from $0.26 to $0.68, which is currently experiencing a price correction.
Currently, Cardano’s ADA is trading near $0.53, and in the last 24 hours, it has experienced over 3.6% of downside momentum. If we examine ADA over a longer period, in the last 7 days, ADA’s price experienced over 6% of upside momentum, whereas in the last 30 days, due to its price correction, it has experienced over 8% of downside momentum.
If we look at the percentage of profitable holders experiencing profit and losses, according to IntoTheBlock, as of now, only 2 million ADA holders are profitable, whereas 2.17 million ADA holders are experiencing losses. The majority of crypto enthusiasts added ADA above $0.54. Additionally, only 289K ADA holders are at the breakeven price.
Cardano’s technical analysis and upcoming price
According to an expert’s technical analysis, ADA, following the breakout of a strong resistance line near $0.54, is currently retesting the same level. If ADA on a daily time frame gives its price closing above $0.56, then in the coming days, we may experience a $0.68 level. During the potential upside momentum, there are three other obstacles that ADA might face: $0.59, $0.63, and $0.68.
Besides the ongoing ADA’s price correction, the overall cryptocurrency industry is experiencing a price correction. As of February 12, 2024, major cryptocurrencies like Bitcoin, Ethereum, Solana, Binance, and many other top coins are undergoing a price correction following the upside momentum.
