The negative sentiment around Cardano price presents a valuable profit opportunity
Cardano is experiencing stagnation while the rest of the crypto market is headed for higher levels. As investors turn their attention to pumping money, Cardano price could be preparing for a breakout.
Cardano price remains dormant as its price action is capped by the 200 and 50-twelve-hour moving averages
Cardano price has been stuck in the 200- and 50 -12-hour moving averages since September 25. These key hurdles have limited price action to a small trading range that has narrowed over time. time. The ADA’s inability to break through support and resistance makes this area a reasonable no-trade zone.
ADA/USD chart | Source: TradingView
Given Bitcoin’s impressive rally towards $13,000, it is reasonable to assume that a breakout will soon occur. Based on this on-chain metric, roughly 5,200 addresses had previously purchased 2 billion ADA between $0.11 and $0.113. Such a massive supply barrier may have the ability to keep rising prices at bay. Holders within this price range would likely try to exit their previously underwater positions, pushing prices back down.
In/Out of the Money Around Price | Source: IntoTheBlock
Due to considerable resistance ahead, the long-term sentiment surrounding Cardano has been too pessimistic. Many market participants seem to believe that ADA has no buying pressure behind it to break out. They seem to be waiting to capture long positions at lower prices.
Nonetheless, going against the herd has proven to be a profitable strategy, especially in the cryptocurrency market. From a counter sentiment perspective, such a state of disbelief is quite bullish as the odds for a major breakout that catches traders off guard drastically increase.
If Cardano manages to turn the $0.11-$0.113 resistance into support, the IOMAP cohorts show no other barrier ahead that will prevent it from rising towards $0.13.
It is worth mentioning that if the overhead resistance rejects any upward price action, the $0.1 level may act as stiff support. Here, more than 18,000 addresses are holding nearly 2.5 billion ADA.
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