Cardano appears to have stabilised at a price point that presents a serious obstacle for bulls, namely the $0.50 to $0.53 area. The aggregation of active addresses inside this average cost range indicates that a considerable number of holders are converging at this price point, wanting to sell and break even, which is why this zone has become a fortress of resistance rather than just previous pricing trends.
According to the most recent data, there is a significant concentration of addresses “At” the profitability level, indicating that any higher price movement in the direction of this range may run into resistance from sellers. This is usually the case when traders who purchased at these prices in the past try to get out of their positions profitably when the price moves back up to where they were originally purchased.
In light of these circumstances, the resistance between $0.50 and $0.53 looks to be subtle but quite strong. It is supported not by historical opposition or order books, but rather by the joint intent of many holders who want to get out at break-even points.
In order for a breakthrough to happen, there has to be enough buying pressure to counteract the sell orders and keep the market moving higher. To draw in new money and persuade current holders to hold onto their investments in order to realise more possible returns, however, a sizable catalyst or shift in market sentiment will be needed.
The chart suggests that the $0.55 resistance, which is indicated by prior price movements, would be the next important level to monitor if ADA is able to break over this resistance zone. Should selling pressure outweigh purchasing enthusiasm, support might be located around $0.47 on the downside, with further buffers at $0.42, where the market has historically shown significant buying interest.
Although the current price level for Cardano represents a significant price level, it is difficult to overcome because of the indirect resistance created by the break-even positions of many investors.
