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Cardano’s price is still trading below $0.40 after recent declines. Due to minimal support from the network’s investors, a rise from this point seems unlikely. Cardano’s price impressively increased by 7% in the last 24 hours, but ADA has not yet surpassed the $0.37 resistance. The altcoin, trading just below this level, appears to be waiting for a significant positive trigger that may not come.
What Is Happening on the Cardano Front?
The lack of this trigger potentially stems from ADA holders avoiding participation in the network. The decrease in participation is noticeable as investors prefer to avoid losses by not transacting on the network. With investors stepping back and prices falling, significant losses could occur.
According to the Global In/Out of the Money (GIOM) indicator, about 7.01 billion ADA tokens worth over $2.5 billion are in question here. This supply was purchased when ADA traded between $0.37 and $0.42. At the time of writing, Cardano’s price fluctuated between $0.42 and $0.37, putting the entire supply at risk. The not-so-profitable supply is on the brink of losses, and investors are guaranteed a significant rise expectation.
In this process, investors will need to raise the price to $0.42 to prevent ADA from losing profitability. This will prevent losses and compensate for all gains lost last week.
ADA Chart Analysis
If the $0.37 support base is turned, Cardano price could be considered to have recovered, and further gains could be expected. However, given the lack of activity and bullish signals, a straightforward rise might be challenging. This process could lead to some resistance in recovering recent losses and potentially even reject a recovery. Thus, ADA may remain below the $0.37 level.
However, if this level’s test as support is successful, it could rise further by surpassing the $0.40 resistance. This will invalidate the bearish neutral thesis and increase profits. Additionally, if the number of users on the network increases, this could trigger a positive process for ADA.
