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According to the data on the chain, Cardano (ADA) He faces a major challenge on his way to regaining the $1 mark, with a sell wall in his way. This sell wall, representing a large pool of 4.3 billion ADA, could serve as a major barrier to a post-$1 recovery in cryptocurrency prices.
According to IntoTheBlock's Global Entry/Exit Index, 4.3 billion ADA were purchased in total volume between $0.947 and $1.09, at an average price of $1.03.
The large group of 309,450 titles currently losing money in this range may act as resistance, since it is a price range with a high concentration of sellers based on on-chain address positions.
For Cardano, this means that the path to $1 and beyond may not only be psychological, but may also be heavily influenced by this hurdle.
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At the time of writing, Cardano (ADA) is trading down 1.50% over the past 24 hours to $0.89 amid ongoing selling in the cryptocurrency market.
If it drops further, a large pool of money between $0.659 and $0.834 is where buying activity is expected to pick up, with the 238,860 addresses previously purchased in this price range likely to provide support.
ADA price action
Ada It is currently trading at $0.87, marking a weekly decline of 18.16%. Bitcoin also saw its first weekly decline in weeks, a pattern mirrored in alternative cryptocurrencies, which are referred to as altcoins.
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Amid the current market uncertainty, the bulls are trying to defend the $0.86 level near the daily 50 simple moving average, fearing that a failure could take the ADA down to $0.69. If this support also breaks down, ADA could drop to as low as 0.50.
This bearish outlook will be refuted in the near term if the price rises and breaks above $1. This will indicate strong demand at lower levels. ADA may consolidate between $1.20 and $0.80 for a short period before charting its course towards the $2 mark.
Meanwhile, optimism remains regarding the price of ADA. According to Ali, a cryptocurrency analyst, Cardano (ADA) follows an eerily similar pattern to its previous cycle. If history repeats itself, Cardano's potential target is expected to be $6.
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