Cardano appears to have found a strong foothold at $1.
Meanwhile, investors have been adding to their ADA holdings.
If the buying pressure persists, ADA could rise toward $1.60.
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Investors appear to be accumulating ADA at a discount. On-chain data shows that buying pressure is at all-time highs while Cardano has built a stiff support level that could prevent further losses.
Cardano Looks Bullish Above $1
Cardano appears to be gathering upward pressure for a breakout.
ADA has suffered a steep downturn since it reached an all-time high of $3.16 on Sep. 2, 2021. The smart contract blockchain saw its market value drop by nearly 71% due to a significant spike in profit-taking.
However, sidelined investors now appear to be taking advantage of the downswing to accumulate tokens at a discount.
On-chain data from Santiment shows that the number of addresses holding between 10,000 and 1 million ADA has increased by 15,000% since Dec. 15, 2021. Roughly 3,900 sizeable wallets have been created since then, signaling a spike in interest among retail investors.
The significant increase in buy orders has helped Cardano create a stable support wall. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that more than 340,000 addresses have previously acquired 7.65 billion ADA at a price of around $1.
The demand zone could have the strength to absorb any spike in selling pressure and allow prices to rebound toward $1.20 or even $1.60.
While the odds appear to favor the bulls, any significant move rests on the $1 support level. A decisive daily close below this barrier could create panic in the market, encouraging investors to reduce the size of their positions. Under such circumstances, Cardano could capitulate toward $0.66 to mark the end of the downtrend.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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