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Cardano has recently found itself at a crossroads, with 2.5 billion ADA facing a potential risk as the price grapples with a critical support level. ADA has witnessed selling pressure since the start of the week, with its price set to mark the fourth consecutive day of losses.
The declines have brought ADA to a key price range, where 2.5 billion ADA are being held by a substantial number of Cardano addresses.
According to IntoTheBlock data, 2.51 billion ADA were bought by 212,010 addresses between $0.426 and $0.461 at an average price of $0.447.
At its current price, ADA is teetering closer to the lower end of this range at $0.426, currently trading down 0.38% in the last 24 hours to $0.432.
This precarious position might cause the value of the 2.5 billion ADA coins, which are currently held by a significant number of investors, to diminish if the price fails to hold above this crucial threshold.
A drop beneath this key range might potentially trigger a test of the support at $0.40. Such a move could present buying opportunities for investors but poses a risk for those currently holding the 2.5 billion ADA.
The outcome of the battle between the bulls and bears might have implications for the ADA price. A sustained move above this key price range might bring ADA to its next resistance range between $0.46 and $0.51, according to on-chain data.
Technically speaking, a sustained break above the daily moving average might be the first sign of strength for ADA bulls.
In a broader context, the cryptocurrency market is facing a sell-off as investors await the Fed's decision on interest rates. The Federal Open Market Committee (FOMC) is not expected to make any changes to interest rates, but investors are increasingly concerned that the central bank might not drop rates this year, dealing a blow to interest rate-sensitive assets such as cryptocurrencies.
Arman Shirinyan
Alex Dovbnya
