Cardano (ADA) is nearing a significant resistance level at $0.39. Over 160,000 addresses holding ADA could halt its price increase by selling at this level. These addresses are mainly those who bought at higher prices and may look to cut losses, thereby increasing selling pressure.
Data shows a substantial resistance zone comprising addresses holding over 2 billion ADA. This selling pressure poses a significant challenge to sustaining further upward movement above $0.39. Surpassing this level is crucial for ADA's continued price rally.
Additionally, profit-taking is rising, indicating a possible price downside. On October 14, on-chain transactions in profit surged, showing approximately $1.44 billion in ADA profits booked in one day. If this trend persists, ADA might struggle to reach $0.40.
The daily chart indicates a head and shoulders pattern, suggesting a potential bearish reversal. This could lead to a price decline towards $0.31. However, if buying pressure surges significantly, ADA could invalidate this bearish outlook and rally towards $0.45.
