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Cardano struggles to break $0.37 resistance amid whale sell-offs

Cardano struggles to break $0.37 resistance amid whale sell-offs

GrafaGrafa2024/09/22 09:20
By:Isaac Francis

Cardano (CRYPTO:ADA) has been facing difficulties regaining bullish momentum, with its price currently struggling to break past the $0.37 resistance level.

Despite a recent 7.5% rise that brought ADA to $0.35, the altcoin has been unable to sustain the momentum necessary for a larger recovery.

If ADA fails to breach the crucial $0.37 barrier, it may consolidate near $0.31, stalling its potential for a 20% rally.

Whales, known for their influence on the market, have shown bearish sentiment toward Cardano’s short-term outlook.

Over the past five days, large investors holding between 10 million and 100 million ADA have offloaded more than 320 million ADA, worth over $112 million.

This significant sell-off indicates a lack of confidence in short-term profits, which could further pressure ADA’s price.

Additionally, data from Santiment shows weakening long-term investor confidence.

The Mean Coin Age metric, which tracks the average age of ADA coins, has not shown a consistent upward trend.

Typically, a rising Mean Coin Age signals confidence among long-term holders (LTHs), reflecting their willingness to hold rather than sell.

The lack of growth in this metric suggests that LTHs are moving their holdings or selling, dimming ADA’s chances for a swift recovery.

Cardano’s price trajectory now hinges on whether retail investors can absorb the selling pressure from whales and if long-term holders regain their confidence.

If ADA manages to break through the $0.37 resistance, it could trigger a 20% rally, pushing the price to $0.42.

However, with ongoing sell-offs and weakening macro momentum, ADA may struggle to regain its bullish stance in the near term.

At the time of reporting, the Cardano (ADA) price was $0.3538.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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