Cardano’s profits reached a nine-month high of 307 million ADA, marking a significant increase in profit-taking activity. This surge in realized profits indicates a shift in investors’ perception of Cardano’s short-term prospects. The cryptocurrency’s market structure has deteriorated as panic selling pushes its price below crucial support levels, resulting in a 15% decline within 48 hours.
The spike in realized profits also highlights the current market psychology. Long-term Cardano holders are choosing to secure gains rather than risk further losses, with approximately $276 million worth of ADA being sold within a 24-hour period.
In addition to the selling pressure, the technical analysis raises concerns about Cardano’s market position. The MACD indicator is approaching a bearish crossover, indicating a potential shift in sentiment towards Cardano. This development comes shortly after a bullish signal, further emphasizing the rapidly changing market sentiment.
The cryptocurrency’s price is currently trading at $0.92 and is facing a critical battle to prevent further decline. The loss of the psychologically important $1.00 level has created a challenging environment, making it crucial for Cardano to reclaim this threshold to facilitate any sustained recovery.
If Cardano stabilizes at $0.85, it could provide a foundation for a potential rebound towards $1.23. However, overcoming the current market skepticism would require significant buying pressure.
