Cardano (ADA), the eighth largest cryptocurrency by market capitalization, could soon be on its way to $0.68 but faces an obstacle in attaining that price level, according to crypto analyst Ali Martinez.
ADA Faces Resistance at $0.54-$0.56 Zone
In a recent X (Twitter) post, Martinez pointed to data from IntoTheBlock indicating that many ADA holders bought their tokens between $0.458923 and $0.623904.
#Cardano faces a formidable obstacle between $0.54 and $0.56, a zone where nearly 50,000 addresses hold approximately 2 billion $ADA. Overcoming this resistance could pave the way for a bullish move toward $0.68! pic.twitter.com/SZJuDe5UQg
— Ali (@ali_charts) February 11, 2024
This price zone, which encompasses roughly $0.54 to $0.56, represents a potential resistance level, as these holders may be inclined to sell their tokens if the price reaches or surpasses their initial purchase price.
Martinez estimates that nearly 50,000 addresses hold approximately 2 billion ADA within this price range. If many of these holders decide to sell their tokens simultaneously, it could put downward pressure on the price of ADA and prevent it from breaking through the resistance level.
$0.68 Next?
However, if ADA can overcome this resistance, it could pave the way for a bullish move towards $0.68, Martinez said.
Martinez’s analysis is based on technical indicators from IntoTheBlock’s “In/Out of the Money Around Price” chart, which shows the distribution of ADA holders based on their purchase price. The chart shows a concentration of holders who bought ADA between $0.54 and $0.56, making it consistent with Martinez’s analysis.
Meanwhile, reaching $0.68 means ADA will have to experience a 21.43% surge from its current price level. Notably, ADA has not reached this level in more than a year.
At the time of writing this line, ADA was trading at $0.5335, representing a 3.7% decline in the past 24 hours. ADA’s market cap has also dropped by more than 3% to $18.9 billion, while its trading volume decreased by 40% to $360 million in the last 24 hours.
