Cardano has recently found itself at a crossroads, with 2.5 billion ADA facing potential risk as the price struggles with a critical support level. ADA has been witnessing selling pressure since the beginning of the week, and its price will mark the fourth consecutive day of losses.
Cardano has recently found itself at a crossroads, with 2.5 billion ADA facing potential risk as the price struggles with a critical support level. ADA has been witnessing selling pressure since the beginning of the week, and its price will mark the fourth consecutive day of losses.
The drops have brought ADA into a key price range, where a substantial number of Cardano addresses hold 2.5 billion ADA.
According In the block According to data, 2.51 billion ADA were purchased by 212,010 addresses between $0.426 and $0.461 at an average price of $0.447.
At its current price, ADA is approaching the lower end of this range at $0.426, and is currently trading down 0.38% in the last 24 hours at $0.432.
This precarious position could cause the value of the 2.5 billion ADA coins, which are currently held by a significant number of investors, to decline if the price does not remain above this crucial threshold.
A drop below this key range could trigger a test of the support at $0.40. Such a move could present buying opportunities for investors, but poses a risk to those who currently hold the 2.5 billion ADA.
The outcome of the battle between bulls and bears could have implications for the price of ADA. A sustained move above this key price range could take ADA to its next resistance range between $0.46 and $0.51, based on on-chain data.
Technically speaking, a sustained break above the daily moving average could be the first sign of strength for ADA bulls.
In a broader context, the cryptocurrency market is facing a sell-off as investors await the Federal Reserve’s decision on interest rates. The Federal Open Market Committee (FOMC) is not expected to make any changes to interest rates, but investors are increasingly concerned that the central bank will not lower rates this year, dealing a blow to interest-sensitive assets. interest rates, like cryptocurrencies.
