Despite repeated attempts to break through key price levels, Cardano (ADA) struggles to regain momentum, with critical on-chain metrics signaling potential further declines. Currently trading between $0.34 and $0.36, ADA's rebound prospects appear increasingly dim. Below, we analyze the key factors influencing Cardano’s price trajectory.
Key Cardano On-Chain Metrics Suggest Downward Pressure
1. In/Out of Money Around Price (IOMAP) Highlights Massive Resistance
- 260,000 addresses hold 6.68 billion ADA in the $0.34–$0.36 range, creating a $2.77 billion resistance zone.
- These "out of the money" holders may sell to break even, capping upward movement.
👉 Why Cardano’s resistance level matters for traders
2. Short-Term Holder Sell-Off Intensifies
- The Balance by Time Held metric shows investors who acquired ADA within the past 30 days to 12 months are offloading their holdings.
- Sustained selling could push ADA below its current support levels.
ADA Price Prediction: Bearish Signals Dominate
Technical Analysis Points to Further Declines
- A head-and-shoulders pattern on ADA’s daily chart suggests a bearish reversal.
- A confirmed break below the $0.34 neckline could trigger a **6% drop** to **$0.32**.
Potential Rebound Scenarios
- If bulls defend $0.34** and demand outweighs the $2.77 billion resistance, ADA could rally to $0.42**.
- However, current on-chain data and market sentiment favor caution.
FAQ: Addressing Key Cardano (ADA) Questions
Q: What is the biggest challenge for Cardano’s price recovery?
A: The $2.77 billion resistance from underwater holders creates a strong sell wall, limiting upward momentum.
Q: How reliable is the head-and-shoulders pattern for ADA?
A: While no pattern is foolproof, the breakdown below $0.34 aligns with bearish on-chain metrics, increasing its credibility.
Q: Should investors consider buying ADA at current levels?
A: Given the strong resistance and sell pressure, waiting for confirmation of a trend reversal (e.g., holding $0.34 or breaking above $0.36) may be prudent.
👉 Explore Cardano trading strategies
### **Key Takeaways**
- **Resistance Zone**: The $0.34–$0.36 range remains Cardano’s critical battleground, with $2.77 billion in ADA holdings pressuring the price.
- **Investor Sentiment**: Short-term holders are exiting, compounding downward risks.