Cardano (ADA) saw a price increase of 3.85% recently, reviving investor hopes for profits. However, technical analysis indicates that these expectations may be overly optimistic. Despite trading at $0.36, investors holding ADA between $0.36 and $0.39 remain at a loss, with significant resistance preventing further upward movement.
The Global In/Out of Money (GIOM) analysis highlights clusters of investors who purchased ADA at higher prices, facing a $1.87 billion worth loss. This indicates a strong resistance zone, making it unlikely for ADA to reach $0.39 soon, disappointing some investors.
Additionally, the Bull Bear Power (BBP) analysis shows a lack of bullish strength relative to bearish control, hinting at potential price declines for ADA. The daily chart also identifies significant supply zones approaching, setting possible resistance points at $0.42 and $0.50.
If buyer strength doesn't improve, ADA could fall to $0.34 or even $0.31. Conversely, if bullish buyers gain control, ADA might breach $0.42, heading toward $0.50, although current conditions make this unlikely.
