- Cardano price indicates the probability of dipping inside the demand zone within the $1.02 - $1.19 range.
- Transaction stats shows ADA's uptrends will encounter massive hurdles between $1.39 and $1.35.
Cardano price hovers within an inflection point amid its downward journey as the altcoin seems ready to venture further lows. On-chain metrics contributed to this bearishness. The data indicates decreased capital inflow and interest.
Cardan Price Might Form a Bull Trap
Cardano (ADA0 experiences slowdowns as the alt wavers around the support floor at $1.30. though ADA has chances to record a quick surge to retest the closest obstacle at $1.40, Cardano might fail to sustain the uptrend.
Cardano has traded on uncontrollable downswings since 2 September. Moreover, the crypto has no retracements halt signs even with the additional support zone beyond the daily demand territory in the $1.02 - $1.19 range.
Market makers can create liquidity via a brief surge to $1.34 and $1.40. However, they can reverse this trend, driving ADA lower towards the daily demand area, trapping Cardano bulls.
Though the downtrend may not make sense from a technical viewpoint, the IOMAP model indicates a massive underwater investors' cluster between $1.39 and $1.35. At this mark, nearly 260,000 addresses bought roughly 5.3 billion ADA tokens at $1.36 as an average price.
That way, a possible surge in buying momentum to push ADA towards this region may meet selling momentum from investors attempting to break even. Moreover, Cardano transactions worth more than $100,000 have declined over the last 90 days, further backing the bearish picture. Large transaction volumes plummeted to 7.97 billion from 46 billion. This 82% fall indicates that whales remain uninterested in ADA at its current price.
Though bears seem to dominate the ADA platform from an on-chain and technical perspective, a significant-close beyond $1.48 will form a higher high, confirming a new upsurge. In such a case, market players can presume ADA to extend its surges to touch the swing point at $1.73.
You can share your views in the comment area below.