Cardano Is Under Significant Buying Pressure

Investors seem to be accumulating ADA at a discounted price. On-chain data show that buying pressure is always high while Cardano is building a solid level of support that can prevent further losses.

Cardano looks bullish for over $ 1

Cardano seems to be collecting upward pressure for the breakout.

ADA has been in a sharp recession since reaching a record high of $ 3.16 on September 2, 2021. The market value of smart contract blockchain has fallen by nearly 71% due to the sharp rise in profit taking.

However, bystander investors now seem to be using downswings to accumulate tokens at discounted prices.

According to Santiment’s on-chain data, the number of addresses holding ADA has increased by 15,000% since December 15, 2021. Since then, about 3,900 large wallets have been created, and the interest of individual investors has skyrocketed.

The significant increase in purchase orders helped Cardano create a stable support wall. IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model shows that over 340,000 addresses have previously acquired 7.65 billion ADA for a price of about $ 1.

The demand zone can have the strength to absorb the surge in selling pressure and allow prices to bounce back to $ 1.20 or $ 1.60.

The odds seem to favor the Bulls, but the key move depends on the $ 1 support level. A decisive daily closing price below this barrier can panic the market and encourage investors to scale their positions. Under such circumstances, Cardano could surrender towards $ 0.66 to mark the end of the downtrend.

Disclosure: At the time of writing, the author of this work owned BTC and ETH.