Cardano stuck at key support as investors exit – Can spot buyers trigger a rally to $1?

• ADA has reached a critical support area on the chart and could repeat a historic move which would take it up to $1
• Cardano chain investors have dropped dramatically, indicating a weakening of the market.

Cardano’s [ADA] Performance over the 24 hour period, with a drop of 1.23% seemed in stark contrast to the 9.09% gain over the month.

AMBCrypto’s research revealed, however, that this drop in price won’t necessarily be an indication that the market’s trend will remain this way. Other factors could also be impacting the price of altcoins. 

Are ADA’s rally plans ready?

At the time of writing, ADA was trading into a key ascending support line on the 1-day chart – Typically a signal that a rally may begin soon.

If ADA continues its previous behavior, it could rise by approximately 30.54% to $0.96.

If the momentum continues to grow, ADA could have the catalysts it needs to reclaim the $1 level.

If the price does not hold at this level, then it may be the first time that ADA falls below the ascending resistance, and could fall to $0.558, the starting point of the pattern.

Who will be the first spot trader?

In recent months, traders at Spot have consistently bought the asset. The fact is that aAccording to Coinglass’s data regarding liquidity flows in and out, more ADA than ever has left the exchange.

These net outflows confirmed a bullish outlook on the altcoin. They also suggested that traders are moving ADA in private wallets to be held for a longer period of time.

Coinglass

Over the past week, $57 million worth of ADA was scooped from the market – The highest weekly purchase since 3 March. The bullish market potential was further boosted by the $3.36 Million that has been purchased in the past 24 hours.

Cardano is also losing its appeal with a substantial portion of its investors.

Investors are flocking to other countries?

There has been a significant drop in the number of investors who are unique on Cardano, the native blockchain for ADA.

According to Artemis, the count of active addresses—representing active investors—has declined by 40,000 on the charts. 

Source: Artemis

For example – On 23 Mat, there were 60,600 active traders on-chain. By the time of publication, this number was down to 20600.

A decline in interest could signal a decline in the trading of on CardanoA negative factor that affects an asset’s value.

This shift was highlighted by the Futures markets, which showed a surge in activity on this market during this time. This was also confirmed by the Taker Buy/Sell ratio, which had a value of 0.9531.

What is the future of ADA?

Finally, the altcoin’s liquidation heatmap revealed that ADA was stuck between two significant liquidity levels on the chart – Around $0.78 and $0.74.

Coinglass

Prices are affected by liquidity levels. If ADA is trapped in between, the asset can move higher or lower.

For either buyer or seller to make a decisive decision, they will need a stronger indication.