Cardano (ADA) has a market cap of $14.8 billion and has recently shown signs of recovery after finding strong support at $0.3800. It has surpassed key resistance levels of $0.4150, outpacing Bitcoin and Ethereum. Although ADA hit a high of $0.4225, it is currently consolidating its gains.
What’s noteworthy is the strong confidence of ADA investors who continue to hold their coins despite market volatility and recent downturns. If ADA surpasses resistance at $0.4450, it could reach $0.50, indicating a strong upward movement. However, if it fails to breach the $0.4225 resistance, ADA could drop to $0.400 or even $0.3880.
Strong Investor Confidence in ADA Amid Market Volatility
Despite facing downward trends in June, ADA investors have remained steadfast in their holdings. The Mean Coin Age, a metric that indicates the average duration coins are held, has consistently risen. This increase suggests that investors are holding onto their ADA for longer periods, reflecting strong confidence in the cryptocurrency’s future performance. This extended holding pattern could potentially lead to substantial profits for investors.
The rise in Mean Coin Age highlights investors’ strong confidence in ADA’s prospects, despite market volatility. According to the Global In/Out of the Money (GIOM) metric, ADA faces potential losses on approximately 1.7 billion ADA purchased between $0.39 and $0.42, totaling $683 million. If ADA’s price continues to rise, this supply could turn profitable, potentially attracting more investors and bolstering ADA’s resilience in a bearish market.
ADA Faces Key Resistance Levels and Potential for Strong Upward Movement
If the price of ADA goes up again, it might face resistance around the $0.420 area. The first hurdle is at $0.4225, and the next important resistance could be around $0.4450. If the price manages to close above $0.4450, it could start a strong upward movement. In that scenario, the price could rise towards the $0.4850 level, with further gains potentially pushing it towards $0.50.
Looking ahead, if ADA fails to breach the $0.4225 resistance level, it may face further downside. Immediate support is expected around $0.4120, followed by major support near $0.4080 and the second trend line. A drop below $0.4080 could lead to a test of $0.400, with additional support near $0.3880.
As of now, ADA is trading at $0.4138, reflecting a surge of 1.5% in the last 24 hours with a market cap of $14.8 billion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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