Cardano (ADA) has been showing signs of a slow recovery after facing a significant drop. Despite the slow pace, investors are keeping a close eye on the altcoin’s movements as substantial gains are still on the horizon.
ADA’s recent price action has left many holders frustrated, but a rally to the right level could unlock $1 billion in profits, bringing renewed hope to its supporters.
Investors seek profits from Cardano
The In/Out of the Money Around Price (IOMAP) indicator reveals that approximately 3.6 billion ADA, valued at over $1.2 billion, were purchased between the current price and $0.37. This large volume of ADA means that breaking the $0.37 resistance could unlock significant gains for investors, making it crucial for future profits.
If the altcoin successfully breaks above the $0.37 mark, this amount will automatically go into profit. As more holders move to this status, it could generate more buying pressure, potentially pushing ADA’s price even higher.
However, reaching that level remains a challenge as the market is volatile at the moment.
Cardano IOMAP. Fonte: IntoTheBlock
From a macro perspective, Cardano is still facing selling pressure, as indicated by technical indicators such as the MACD. The indicator’s histogram is still showing red bars, suggesting that the bearish trend persists and a full recovery is not yet underway.
For a successful trend reversal for ADA, these red bars must turn green, signaling that bullish momentum has returned to the market. While the macro momentum remains cautious, it is not entirely bleak.
If market sentiment changes and technical indicators start to align, ADA could see a resurgence. Until then, the price remains in a precarious position, and the market awaits the next major move that could either confirm or invalidate the current outlook.
Cardano MACD. Fonte: TradingView
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
Price forecast
Cardano is currently trading at $0.34, which coincides with a crucial support level. The altcoin is looking to bounce off this support and target the resistance level at $0.37. Given the importance of this level, a successful breakout could result in a notable price rally.
With $0.37 just over 9% from the current price, unlocking $1 billion in profits for holders is within reach. If this resistance is overcome, the asset could rally further to $0.40, pushing more investors into profitability and solidifying an uptrend.
Cardano Price Analysis. Source: TradingView
However, if Cardano loses support at $0.34, the price could drop to $0.31. Thus, such a decline would invalidate the bullish outlook, denying investors their potential profits and extending current losses, leading to a more bearish scenario for ADA holders.
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