On-chain data indicates that Cardano faces significant resistance at various levels on its journey to reach the sought-after $1 milestone.
Since hitting a yearly high near $0.8 in mid-March, Cardano’s price has struggled, dropping as low as $0.58 a week later and settling for $0.647 at the time of writing. The decline is largely attributable to a broader market sell-off but has now handicapped ADA’s growth.
The price action pushed Cardano’s price below stiff resistance levels. Among these resistance levels is the range between $0.65 and $0.70.
According to data from IntoTheBlock, investors had purchased a combined 2.14 billion ADA ($1.36 billion) at the aforementioned price level.
These investors might provide strong selling pressure, especially if the group includes bearish buyers who are comfortable with exiting their position at a breakeven price, or with mild profits.
As a result, Cardano bulls must put up a good fight to overtake this price range and send Cardano’s price higher in 2024.
Meanwhile, the next resistance levels exist in the ascendancy channel between $0.7 and $0.72. An estimated 108,000 addresses acquired 1.42 billion ADA ($908 million) at this level, which may provide selling pressure.
Cardano Eyes 2022 Highs
Amid the stiff resistance levels ahead, a beacon of hope exists for Cardano investors. Crypto market sentiment remains largely bullish going into the historical Bitcoin halving and a potential continuation of the bull run.
If such a situation plays out, Cardano might be a big beneficiary, given its position in the top ten cryptocurrencies by market cap.
Many analysts predict that Cardano could go as high as $5 this cycle, beating its previous all-time high by a significant margin. Still, others aim for a $7.5 high, which represents a more than 1,000% increase from Cardano’s current price.