Despite attempts at a breakout, Cardano’s (ADA) recovery is hindered by resistance. On-chain metrics show ADA struggling between $0.34 and $0.36, as significant resistance around $2.77 billion hinders growth.
The In/Out of Money Around Price (IOMAP) indicates potential pullback, as many holders purchased ADA at higher levels, creating strong resistance zones. Over 260,000 addresses hold 6.68 billion ADA within this price range, outnumbering those in profit.
Cardano’s price faces difficulty breaking through resistance due to holders seeking to break even. The Balance by Time Held metric also reveals short-term holders selling ADA, possibly increasing downward pressure.
On the daily chart, ADA has formed a head-and-shoulders pattern, suggesting a bearish reversal. Breaking below the $0.34 neckline might lead ADA to drop another 6%, possibly down to $0.32.
Conversely, if bulls defend $0.34 and demand rises, ADA could rebound to $0.42. However, the current metrics and patterns suggest caution for investors.
