Cardano (ADA) price has seen a significant spike since the June crash. While there have been moments of recovery, the overall trend has been bearish.
Making matters worse is the fact that nearly $3.3 billion in profits are at stake, but ADA investors’ optimism could save them.
Cardano Investors Hoping for Recovery
Cardano price is showing signs of further decline, with the altcoin already down 2.2% today. The concerns here are much greater than before, as billions of dollars of ADA could lose their profitability.
According to the Global In/Out of the Money (GIOM) indicator, 3.7 billion ADA worth about $1.4 billion went into the red earlier this week. This supply was bought between $0.39 and $0.41, through which ADA fell, losing support at $0.40.
Now, another 5 billion ADA, worth $1.9 billion, is on the verge of suffering a similar fate. This supply was purchased at $0.36 and $0.39. Trading at $0.38, Cardano’s price is very close to losing the $0.36 support.
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
If that happens, it would result in losses of about $3.3 billion in just two weeks, putting investors on a bearish trajectory.
They are currently holding off on selling to recoup their losses. Monitoring active addresses by profitability shows that less than 3% of all active addresses are currently in profit. Their presence, dominating participation over 25%, is a bearish sign.
This is because they tend to sell more often, which hurts the price of Cardano. So their resilience can prevent further drawdowns and help ADA recover.
ADA Price Forecast: Recovery
Cardano price has fallen more than 14% in the last 11 days and is currently trading at $0.38. The next critical support for ADA is at $0.37, which has already been tested in the past.
If investor confidence is also reflected in the price, ADA could see a rebound. The recovery goal is to recapture the $0.40 support. This would push the altcoin even higher, helping Cardano recover its losses.
Read More: Cardano (ADA) Price Prediction 2024/2025/2030
But if the $0.37 support is lost, the altcoin will eventually fall to $0.34. A drawdown is not expected, but even then, ADA investors may face one, which will invalidate the bullish thesis.
