Cardano’s (ADA) recent attempts to break through resistance have met considerable challenges. Hovering between $0.34 and $0.36, ADA’s prospects of a significant price rebound are now uncertain as several on-chain metrics point to possible downward pressure.
Key Resistance Holds ADA Back
A primary indicator suggesting resistance is Cardano’s In/Out of Money Around Price (IOMAP) metric. The IOMAP shows how many ADA holders are “in,” “out,” or “at” the breakeven point based on the token’s current value. This data provides insight into where holders might either support or resist price movement, with strong clusters indicating potential resistance.
According to data from BeInCrypto, approximately 260,000 addresses hold 6.68 billion ADA within the $0.34 to $0.36 range, translating to around $2.77 billion. Given that many of these holders are at a loss or breakeven, they may sell if the price rises, limiting ADA’s ability to push higher.
Short-Term Holders Add to Selling Pressure
Another key metric, Balance by Time Held, reveals a trend among short-term ADA holders. Those who acquired ADA within the last year are showing signs of selling, adding further selling pressure that could hold the price below current levels. If this trend continues, ADA may struggle to achieve a meaningful price increase.
ADA Price Prediction: Head-and-Shoulders Pattern Signals Caution
On the daily chart, ADA has formed a bearish head-and-shoulders pattern, which typically signals a trend reversal from bullish to bearish. The neckline for this pattern sits at $0.34, which ADA has already tested and dropped below. If this bearish signal persists, ADA could decline further, potentially reaching $0.32.
However, if bulls manage to defend the $0.34 support and demand overcomes the $2 billion resistance level, ADA could rally toward $0.42.
