This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Cardano is currently facing a major resistance wall, which is hindering its price from moving higher. On-chain data suggests that there is significant resistance around the $0.38 mark, based on the cost basis of a large number of investors. The cost basis refers to the price at which investors bought their Cardano tokens, and retesting this level could result in a swing in their profit-loss situation. Investors tend to react to such retests based on their prior profit-loss situation. If they were holding a profit, they might take a further gamble at the same price level, believing it will be profitable again in the future. On the other hand, if the retest is happening from below, investors may lean towards selling to avoid potential losses if the price declines again. The concentration of investors who acquired their coins within a certain price range can also influence market reactions to retests. The current price range of $0.37 to $0.39 has a cost basis of over 319,000 addresses, indicating a significant level of resistance. Breaking through this resistance wall would be challenging for Cardano, but if achieved, it could turn into a support zone and provide a solid foundation for further price increases. Currently, Cardano is trading around the $0.38 level, right in the middle of the resistance wall. The asset’s value has been moving sideways in recent days.