Cardano’s (ADA) price is still hovering in the sub $0.40 range, which it has reached following recent declines.
The recovery from here will be difficult since the network is witnessing minimal support from its investors.
Cardano Investors Remain Bearish
Cardano’s price has been rising impressively by 7% over the past 24 hours, but ADA has yet to breach the resistance at $0.37. Trading right under it, the altcoin seems to be awaiting a huge positive trigger that may not arrive.
The lack of this trigger is potentially due to the ADA holders refraining from participating in the network. The decline in participation is a reaction from the investors who are opting to prevent losses by not conducting a transaction.
Cardano Active Addresses. Source: Santiment
With the traders backstepping and the price declining, the larger impact will be massive losses.
According to the Global In/Out of the Money (GIOM) indicator, about 7.01 billion ADA worth more than $2.5 billion is at stake here. This supply was bought when ADA was trading between $0.37 to $0.42.
The entire supply is at risk since Cardano’s price fell from $0.42 to change hands at $0.37 at the time of writing. Barely profitable, the supply is on the verge of losses and warrants substantial bullishness from the investors.
To keep these ADA from losing profitability, investors will have to push the price back up to $0.42. This will prevent the losses and recoup all the lost gains from the past week.
Cardano GIOM. Source: IntoTheBlock
ADA Price Prediction: Trigger Ahead
Once $0.37 is flipped into a support floor, Cardano’s price can be considered recovering. Further gains can be expected. However, a straight-up rally may be slightly difficult, considering the lack of activity and bullish cues.
This could lead to some resistance in recovering the recent losses, potentially even rejecting a bounce back. Thus, ADA could end up hovering under the $0.37 mark.
Cardano Price Analysis. Source: TradingView
However, if the test of this level as support is successful, it could push through the barrier at $0.40 to rally further. This would invalidate the bearish-neutral thesis and increase profits.