- The article reports a significant downturn in the price of Cardano (ADA), resulting in nearly $20 million in realized losses for ADA holders on Tuesday alone amidst a broader market correction triggered by Bitcoin’s decline.
- With over 60% of Cardano holders currently sitting on unrealized gains, profit-taking could intensify selling pressure, potentially leading to further declines in ADA’s price.
Cardano (ADA) holders faced a grim reality this week as the cryptocurrency market witnessed a significant downturn, resulting in nearly $20.09 million in realized losses for ADA holders on Tuesday alone. This plunge comes amidst a broader market correction, with Bitcoin’s sharp decline catalyzing mass liquidations across the board.
On Wednesday, ADA’s price sank to $0.56, marking its lowest level since mid-February. This decline intensified as traders scrambled to offload their ADA holdings, fearing a deeper correction in the near term. According to Santiment data, the consecutive days of losses amounted to approximately $20.09 million on Tuesday and nearly $785,000 on Wednesday, underscoring the severity of the situation.
Unrealized Gains Amplify Selling Pressure
Compounding the issue, around 64% of Cardano wallet addresses currently sit on unrealized gains, according to IntoTheBlock data. This dynamic presents a precarious situation wherein profit-taking could exacerbate the selling pressure on ADA, potentially triggering further declines in its price.
The critical price range of $0.59 to $0.64 looms large in Cardano’s recovery efforts. Within this range, a significant number of wallet addresses, totaling 178,410, acquired 2.23 billion ADA tokens. However, if ADA fails to maintain levels above $0.59, an additional 178,410 wallet addresses could find themselves in a position of unrealized losses, further complicating the recovery trajectory.
Technical Indicators Paint a Challenging Picture
From a technical standpoint, Cardano’s price trajectory remains uncertain. The Moving Average Convergence/Divergence (MACD) indicator reflects negative momentum, while the Relative Strength Index (RSI) hovers below the neutral zone at 41.25. A further dip in RSI into the oversold region could signal intensified bearish pressure, potentially driving ADA’s price even lower.
Path to Recovery Amidst Uncertainty
Despite the prevailing challenges, there remains a glimmer of hope for Cardano’s recovery. Should ADA manage to reclaim resistance at $0.6291 and secure a daily close above the 50% Fibonacci retracement level, it could signal a shift in momentum. This would invalidate the bearish thesis and pave the way for a potential rebound towards resistance levels at $0.7328 and $0.8104.
Cardano finds itself at a critical juncture as holders grapple with significant losses amidst market turbulence. While the path to recovery remains fraught with challenges, strategic moves and favorable technical developments could yet offer a lifeline for ADA’s battered price.
