Although Cardano (ADA) has made a spectacular comeback in the top 10 cryptocurrencies by market capitalization, overthrowing Toncoin (TON) and Shiba Inu (SHIB), a massive collective purchase of 2.9 billion ADA might impact the continuation of its upward move based on the purchasers’ further actions.
As it happens, 206,040 addresses have purchased Cardano in the range of $0.466 – $0.499, or at an average price of $0.481, creating a strong resistance at this price point, which the currently ninth-largest crypto asset by market capitalization has to overcome, as per IntoTheBlock data on May 30.
Global in/out of the money for Cardano. Source: IntoTheBlock
Indeed, the above barrier is a true test for Cardano bulls, as the crypto traders holding the 2.9 billion ADA opting to sell the token could lead to a massive price decline, albeit keeping it or buying more could signify optimistic sentiment and, consequently, an increase in price.
In terms of its technical analysis (TA), the PrimeXBT data makes it clear that ADA is trading below its 50-day, 100-day, and 200-day moving average (MA), which is a bearish sign, but its 14-day relative strength index (RSI) is still in the neutral zone, which suggests things could move either way.
It is also important to note that the crypto market analytics platform CryptoBusy has recently pointed out that Cardano had “solid technical foundations” but that it needed to “up its game with more effective marketing strategies like Solana’s (SOL) to raise awareness and adoption,” according to its X post on May 27.
Our thoughts on $ADA right now: [MUST SEE]While #Cardano has solid technical foundations, it needs to up its game with more effective marketing strategies like #Solana's to raise awareness and adoption.Solana has set a high bar with DEXes like #Jupiter $JUP and Raydium, which… https://t.co/VkB45fQIPt pic.twitter.com/GntiT2VEEQ
— CryptoBusy (@CryptoBusy) May 27, 2024Ultimately, Cardano has a challenging task ahead, trying to overcome the above resistance and only time will tell if it will succeed, which is why doing one’s own due diligence and keeping up with any important Cardano news is critical when choosing to invest in it.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
