4 - 6 minute read
The price of the native token of smart contract platform Cardano ($ADA) is currently facing a significant challenge. A “colossal sell wall” made up of 3.85 billion tokens worth over $1.5 billion is currently preventing the price of ADA from reaching greater heights. Popular cryptocurrency analyst, Ali Martinez, has suggested that if the price of ADA can break through the $0.40 and $0.42 levels, it will have “minimal resistance ahead” and will be able to spark a bull rally.
The sell wall has been a significant challenge for the Cardano community, as it has been preventing the price of the native token from experiencing a bull run. However, the cryptocurrency community is optimistic that the price of ADA will break through the wall and experience a price surge, which will benefit traders and investors alike.
#Cardano | A colossal 3.85 billion $ADA sell wall stands between $0.40 & $0.42! 🚧— Ali (@ali_charts) April 2, 2023
Slicing through this barrier may spark a bull rally for #ADA, as it faces minimal resistance ahead. pic.twitter.com/58SdHxbCzp
The Role of Whales in ADA’s Price
Despite the challenging sell wall, whales have been accumulating the network’s native token, indicating that they believe in the long-term potential of the Cardano platform. Over the past month, large token holders have added a total of 150 million tokens to their portfolios, adding to the growing adoption of Cardano.
Despite the current optimism surrounding Cardano, the cryptocurrency community is expecting the price of ADA to drop during the month of April. Respondents who submitted price estimates predicted that ADA would end the month trading at $0.37 per token, down around 7% from the token’s current price of around $0.3989.
The Bullish-to-Bearish Trend Reversal
The cryptocurrency analyst has revealed that the price of $ADA could break out to $0.60 per token after it formed a head and shoulders pattern on the daily chart. This chart formation predicts a bullish-to-bearish trend reversal, meaning an inverted one indicates a bearish-to-bullish reversal. The head and shoulders pattern is considered one of the most reliable trend reversal patterns.
Traders who are interested in investing in Cardano should keep a close eye on the price of ADA and the sell wall. If the price of ADA manages to break through the sell wall, it will likely experience a bull run. However, traders should also be aware of the negative outlook for April and should consider this when making investment decisions.
#Cardano | This head and shoulder pattern on $ADA daily chart is looking like my textbook!— Ali (@ali_charts) March 29, 2023
If validated, #ADA may break out to $0.60. pic.twitter.com/ctQiNi1G9M
The price of Cardano’s native token, ADA, is currently facing a significant challenge in the form of a “colossal sell wall.” However, the cryptocurrency community is optimistic that the price of ADA will break through the wall and experience a price surge. Traders should keep a close eye on the price of ADA and consider the negative outlook for April when making investment decisions. If the price of ADA manages to break through the sell wall, it will likely experience a bull run, benefiting traders and investors alike.