With Over 60% of ADA HODLers in loss, When Will Cardano Recover?
With Bitcoin above the $42,700 mark at press time, noting over 15% weekly gains most of the top altcoins were painted in green on their daily charts. Some of the top gainers in the top 20 coins by market cap were XRP and Shiba Inu noting 15% and 25% daily gains respectively. Nonetheless, ADA, the sixth-ranked coin by market cap still traded at $1.18 near the long-term $1 support-resistance line despite the Cardano founder’s bullish stance about the token.
ADA’s Price Struggle Continues
ADA’s price breached its long-term consolidation range between $1 and $1.125 but as compared to the rest of the market Cardano’s gains were smaller. Cardano price still struggled to make higher highs for the last twenty days as the $1.2 range acted as a strong resistance line at the moment.
Your capital is at risk
Cardano’s price oscillated between the $1 and $1.125 mark for almost a fortnight with the $1.12 mark acting as a strong resistance. In the after-hours of February 4, ADA broke from this pattern and made a high of $1.17 on February 5.
The worrying part, however, was ADA’s rangebound movement close to the $1 mark which has also led to some negative social media commentary around the coin. Many on crypto Twitter have associated ADA’s price trajectory of late with a stablecoin owing to the altcoin’s price move around the $1 mark.
For now, the altcoin faces two critical resistances at $1.20 and the next at $1.24 which is also the 50-day Simple Moving Average (SMA). So while there are chances of a price push if the larger market’s momentum is restored, the pumps could be relatively smaller in terms of price appreciation.
Cardano Founder Bullish on ADA
In a recent interview, Cardano founder Charles Hoskinson criticized the lawsuit filed by CardStarter against SundaeSwap. He said that a lawsuit is a ‘horrendously expensive’ and time-consuming way to tackle a disagreement. CardStarter filed a lawsuit against SundaeSwap over a disagreement on the number of SUNDAE tokens to be set aside, irrespective of a merge between the two projects.
Most importantly, however, Hoskinson highlighted his thoughts that the long-term growth of the network remains intact. Looking at recent developments for instance the rise in the number of ADA wallets, Hoskinson’s comments on long-term growth seem plausible.
Notably, the number of Cardano wallets has climbed by 13.08% since the beginning of 2022, rising from 2,666,372 on January 1 to a high of 3,015,400 in the first week of February.
For now, the major concern for ADA HODLers is short-term price growth. As per data from IntoTheBlock, 63% of Cardano HODLers at press time price of $1.18 were Out of Money or in a loss. Thus, ADA’s short-term recovery would be crucial but a massive rally in the near term didn’t seem to appear for Cardano HODLers’ cards.