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Cardano’s price is fluctuating above its recent swing low, marking a potential bottom. This recovery, while impressive, is likely to be limited due to numerous obstacles and bearish indicators in the network.
Since May 6, Cardano’s price has fallen 57% and 87% from its all-time high of $3.11. The latest phase of this massive decline was due to the UST-LUNA collapse, which caused the crypto market to collapse.
Cardano’s price has since rebounded 47% to the current $0.58. Despite this impressive pullback, a further uptrend seems unlikely due to a number of factors.
Resistance at $0.677 is likely to be the local high of the Cardano price, and this is where the upside potential may be limited. Besides this barrier $ 0.785 and $ 0.900 are two significant obstacles that can completely stop the bullish momentum.
Another confirmation of Cardano’s bearish price outlook is the behavior of cryptokits. A group of investors with between 10,000 and 100,000 ADA tokens have been selling their assets since April 10. This category fell from nearly 22,500 to 20,500, a drop of 8.8%.
The same trend has been seen for cryptokits owning between 100,000 and 1,000,000 ADA tokens. The number of these investors dropped from 127,600 to 121,500, a drop of 4.7%. The most significant losses are in those who accumulate 1 to 10 million ADA tokens, their number decreased from 2,589 to 2,540 in the last two weeks.
Regardless of the number of tokens they are storing, whales in general have been selling for quite some time. This development indicates that long-term holders are losing confidence in the project and therefore in the success of ADA.
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