- A loss for holders could dampen enthusiasm, in particular with Cardano.
- It may get easier for the asset if it breaches the main resistances.
Cardano [ADA] You can also find out more about the following: Shiba Inu [SHIB] There was a lack of price activity in the last few weeks, and there is a slight bearish trend. ADA held onto the support of $0.568 but looked to be in a precarious position. Shiba Inu appeared to also be on course for a demand area 13% south.
An analyst posted on X that Cardano, Shiba, and other altcoins had a high percentage of holders. out-of-the-money. What are the implications?
Cardanos and Shiba Inu bulls face a steep battle
The options market has its own definition of “out-of-the money”. It simply refers to those who hold crypto. At current prices 50% of ADA holders They were in a state of confusion and 28% of Shiba Inu holders The red is the result of IntoTheBlock data.
If the cost average of an investor’s asset is higher than the market value, then the investor has a net loss.
It was a significant portion of all holders. This implied that an increase in price would probably lead to a lot of pressure on sellers in the form profit-taking.
ADA therefore would have greater selling pressure than the other two coins because a higher percentage of its owners would lose money if they were to sell now. A technical analysis could help determine where there would be a high level of selling pressure.
Cardano Shiba and Shiba inu underwent retracements
TradingView: ADA/USDT
The asset’s price in March was characterized by a rise to a new high, $0.81, before retracing back down to 0.568. In the last week, trading volumes have also decreased. This is a clear sign of consolidation.
The rally had not been discussed at the time of publication. A further dip towards the $0.525 78.6% level of retracement seemed likely, given that the level has been repeatedly tested.
The selling pressure could start to increase again if the price rises above $0.8. On the higher-timeframe charts, the resistance levels of $0.8-$0.84 as well as $1-$1.05 were clearly visible.
TradeView SHIB/USDT
Shiba inu showed the same signs of consolidation that Cardano did. Trading volume is down dramatically, and bulls are unable to move above $0.000032 which was a support level during the first two-thirds of March.
You can read more about it here Shiba Inu’s [SHIB] Price Prediction 2024-25
On the 1-week chart, the areas of $0.000031 to $0.000032 and $0.000039 to $0.00004 were two key bearish zones.
If holders who are underwater try to sell at break even or make a small profit, the selling pressure will be increased.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
