Cardano’s (ADA) price has increased by a modest 3.85% in the last 24 hours, rekindling hopes for investors who bought the token at higher values. However, both technical and on-chain data indicate that these ambitious profit targets might be overly optimistic.
The recent price increase has prevented ADA from dropping back to $0.30; currently, it trades at $0.36. The Global In/Out of Money (GIOM) metric reveals that investors who accumulated ADA between $0.36 and $0.39 are still at a loss.
The GIOM categorizes addresses based on profitability, helping identify potential support and resistance levels that may impact future price movements. A significant volume of 373,000 addresses holds 5.21 billion ADA at an average price of $0.37, which translates to a loss of $1.87 billion. In contrast, those who purchased around $0.35 are currently in profit.
ADA is approaching two major supply zones at $0.42 and $0.50. Analyzing the daily chart indicates that resistance may occur around $0.37. If this resistance holds, ADA could decline to the $0.34 support level, with further declines possible if bulls cannot defend this area.
Conversely, if buyer strength increases, ADA might break through $0.42 and potentially head toward $0.50.
