Recent weeks have seen a lackluster performance from Cardano (ADA) and Shiba Inu (SHIB), with both cryptocurrencies facing short-term bearish pressure. ADA struggled to hold onto the $0.568 support level, while SHIB seemed to be heading towards a demand zone with a 13% drop. However, the true significance lies in the large percentage of holders that are currently at a loss.
According to data from IntoTheBlock, 50% of ADA holders and 28% of SHIB holders are currently in the red. This means that their average cost of investment is higher than the current market price. Essentially, these holders are at a loss, which could have implications for the bullish sentiment surrounding these altcoins.
If prices were to rise, a significant amount of selling pressure would likely be triggered as holders aim to take profits and recover their losses. ADA would face greater selling pressure compared to SHIB, as a larger portion of its holders are currently at a loss.
Technical analysis of both coins could provide further insights into the potential selling pressure. For ADA, the recent price action indicates a consolidation phase, with multiple tests of the $0.568 support level. Another dip towards the 78.6% retracement level at $0.525 could be expected. However, if ADA manages to break above the $0.8 level, selling pressure could escalate significantly, given the strong resistances at $0.8-$0.84 and $1-$1.05.
Similarly, SHIB has also shown signs of consolidation. The trading volume has decreased, and the bulls have struggled to push above the $0.000032 level, which previously acted as support. The $0.000031-$0.000032 and $0.000039-$0.00004 areas are key bearish zones to watch out for on the 1-week timeframe.
It’s important to note that if underwater holders, those currently at a loss, decide to sell at break-even or even a small profit, the selling pressure could intensify further.
In conclusion, Cardano and Shiba Inu are facing an uphill battle in their quest for bullish momentum. The large percentage of holders currently at a loss could dampen the market’s fervor. As prices breach key resistances, the selling pressure is likely to increase, potentially hindering the bullish progress of these cryptocurrencies.
The cryptocurrency industry has been experiencing a lackluster performance in recent weeks, particularly for coins like Cardano (ADA) and Shiba Inu (SHIB). Both of these altcoins have faced short-term bearish pressure, with ADA struggling to hold onto its $0.568 support level and SHIB seeing a 13% drop towards a demand zone.
However, the true significance of this performance lies in the high percentage of holders who are currently at a loss. According to data from IntoTheBlock, 50% of ADA holders and 28% of SHIB holders are in the red. This means that their average cost of investment is higher than the current market price, indicating that they are currently at a loss.
This situation has implications for the bullish sentiment surrounding these altcoins. If prices were to rise, many of these holders would likely sell their holdings in order to take profits and recover their losses. ADA would face greater selling pressure compared to SHIB, as a larger portion of its holders are currently at a loss.
A deeper technical analysis of both coins could provide further insights into the potential selling pressure. For ADA, the recent price action suggests a consolidation phase, with multiple tests of the $0.568 support level. It’s possible that ADA could dip further towards the 78.6% retracement level at $0.525. However, if ADA manages to break above the $0.8 level, selling pressure could escalate significantly, as there are strong resistances at $0.8-$0.84 and $1-$1.05.
Similarly, SHIB has also shown signs of consolidation, with a decrease in trading volume and struggles to push above the $0.000032 level, which previously acted as support. On the 1-week timeframe, the $0.000031-$0.000032 and $0.000039-$0.00004 areas are key bearish zones to watch out for.
Furthermore, it’s important to note that if the underwater holders, those currently at a loss, decide to sell at break-even or even a small profit, the selling pressure could intensify further.
In the larger industry context, it’s worth considering market forecasts and issues related to the cryptocurrency industry. Many analysts predict continued volatility in the market, as it is still relatively nascent and subject to rapid price fluctuations. Additionally, regulatory concerns and potential crackdowns on cryptocurrencies in certain jurisdictions could also impact the market.
Overall, Cardano and Shiba Inu are currently facing challenges in their quest for bullish momentum. The high percentage of holders currently at a loss could potentially dampen the market’s enthusiasm. As prices breach key resistances, the selling pressure is likely to increase, which could hinder the bullish progress of these cryptocurrencies.
For further information about the cryptocurrency industry, market forecasts, and related issues, you may want to explore reputable sources such as CoinDesk, Cointelegraph, or CoinMarketCap.