- 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
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.
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.
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Source: ambcrypto.com