- Cardano’s price appears to hold the line following the 57% slump to $0.384.
- Nevertheless, the immediate obstacle at $0.677 might limit further recovery by ADA.
- A daily candle closing beneath $0.397 will annul the already precarious optimistic tale.
Cardano sees its price staying well beyond the latest swing low that printed a possible bottom for the alt. Though this recovery appears impressive, massive hurdles plus bearish on-chain indexes could limit further upticks.
Cardano Price Should Prove Its Strength
Cardano dropped 57% from 6 May and approximately 87% from the $3.11 all-time high. The last act of this colossal fall emerged after the LUNA-UST crisis that saw the entire marketplace in a bloodbath. The latest southward move appears to stabilize after hitting the support floor at $0.397.
The alternative token has recovered about 47% since then to $0.55, its current value. While the uptrend was attractive, extending the leg-up appears unlikely amid multiple challenges plaguing Cardano’s recovery road.
The closest resistance zone sat at $0.677, and ADA will likely form a local high in the area, capping further upsides. Overcoming this barrier will see the alt at the crucial obstacle at $0.785, then $0.900. These hurdles might ensure a dead stop for Cardano’s bullish actions.
Also, whales’ reaction according to the supply distribution graph supports Cardano’s bearish case. The investor category falling at 10,000 – 100,000 Cardano tokens has been offloading since 10 April. These investors declined from around 22,500 to 20,500, translating to an 8.8% drop.
Whales with 100K to 1 million coins also revealed a similar trend. This category noted a 4.7% drop to 121,500 from 127,600. Meanwhile, the most vital group that purchased between 1 million – 10 million Cardan tokens declined to 2,540 from 2,589 within the past two weeks.
Besides the number of assets they hold, whales have resorted to selling. That shows long-term investors losing confidence in the project and ADA’s price performance. Nevertheless, Cardano’s price producing a daily candlestick closing beneath $0.397 will cancel the feeble bearish narrative through a lower low. Such a move can see ADA losing another 23% to $0.307.
Stay tuned for upcoming cryptocurrency news.