Cardano (ADA) and Shiba Inu (SHIB) have seen quiet price movements and short-term downward pressure in recent weeks. ADA was trying to hold onto the support at $0.568 but its position looked precarious. Shiba Inu also appeared to be on a trajectory towards a demand zone focused on a decline, with a 13% drop. A crypto analyst’s post on platform X mentioned that Cardano and Shiba Inu, along with other altcoins, have a significant percentage of ownership out of the money. So, what could be the consequences of this development?
Cardano and Shiba Inu Bulls Face a Challenging Battle
Being out of the money has a different meaning in the options market. When referring to crypto holders, it simply means they are at a loss. According to IntoTheBlock data, at current market prices, 50% of ADA holders are at a loss, and 28% of Shiba Inu holders are in the red.
To put it simply, if an investor’s average cost for assets is higher than the current market price, the investor is at a loss. This situation represents a large portion of the total ownership. It also means that a price increase is likely to see significant selling pressure as many will seek to realize profits.
Therefore, ADA will face greater selling pressure between the two coins because a larger portion of its holders will encounter a loss if they sell now. A technical analysis of the two tokens can give a better idea of where this selling pressure could be high.
Cardano and Shiba Inu in a Pullback Phase
ADA’s price movement in March saw the asset record a new high of $0.81 before retreating to the $0.568 support level. Trading volume also decreased over the past week. This was a strong sign of consolidation. At the time of writing, a rally had not yet been discussed. Instead, considering the repeated tests of the support level, a decline towards $0.525 could be possible.
Above the $0.8 level, selling pressure could begin to increase tremendously once again. Higher timeframe charts showed that the $0.8-$0.84 and $1-$1.05 regions are two strong resistances that could halt the uptrend.
Shiba Inu Exhibits Similar Consolidation Signs
Shiba Inu also showed similar signs of consolidation as Cardano. Trading volume significantly decreased, and bulls were unable to push above the $0.000032 level, which served as support in the first half of March.
The 1-week timeframe chart indicated that the $0.000031-$0.000032 and $0.000039-$0.00004 regions are two decline areas to watch.
