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- Cardano price shows signs that it might dip into the $1.02 to $1.19 demand zone.<\/strong><\/li>\n
- Transaction data shows that the uptrend for ADA will face massive resistance from $1.39 to $1.35.<\/strong><\/li>\n
- A decisive close above $1.48 will create a higher high and invalidate the bearish thesis.<\/strong><\/li>\n<\/ul>\n
Cardano price is at an inflection point in its downswing<\/a> journey and is likely to head lower going forward. The predominant reason for this bearishness is due to the on-chain metrics, which is showing a decline in interest and capital inflow.<\/p>\n
Cardano price might engineer a bull trap<\/strong><\/h2>\n
Cardano price is currently experiencing a slowdown as it hovers around the $1.30 support level. While there might be a quick run-up, perhaps to retest the immediate barrier at $1.40, it is unsure if ADA can sustain it.<\/p>\n
Since September 2, Cardano price has been on a relentless downtrend and shows no sign of stopping even as it grapples with another support level, just above the daily demand zone, extending from $1.02 to $1.19.<\/p>\n
Market makers are likely to engineer liquidity<\/a> by triggering a brief run-up<\/a> to $1.34 or $1.40, but eventually, reverse the trend and drive ADA down to the daily demand zone, trapping the bulls.<\/p>\n
![\"ADA\/USDT](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/ADAPERP_2021-12-10_10-23-44-637747096757316215.png\")
<\/a><\/p>\nADA\/USDT 4-hour chart<\/small><\/p>\n
From a technical perspective, the downswing might not make sense, but IntoTheBlock\u2019s In\/Out of the Money Around Price (IOMAP) model shows that a huge cluster of underwater investors is present between $1.39 to $1.35. Here, roughly 260,000 addresses purchased nearly 5.3 billion ADA at an average price of $1.36.\u00a0<\/p>\n
Therefore, a potential spike in buying pressure that pushes Cardano price into this area is likely to be met with selling pressure<\/a> from investors trying to break even.\u00a0<\/p>\n
![\"ADA](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/iomap-637747096908061721.png\")
<\/a><\/p>\nADA IOMAP<\/small><\/p>\n
Further supporting this bearish outlook is the decline in the transaction volume worth $100,000 or more for Cardano over the past three months from roughly 46 billion to 7.97 billion. This 82% drop in suggests that whales or high networth individuals are not interested in ADA at the current price levels.<\/p>\n
<\/a><\/p>\n
ADA transaction volume chart<\/small><\/p>\n
While things are looking grim for Cardano<\/a> price from a technical and on-chain perspective, a decisive close above $1.48 will create a higher high, suggesting the start of a new uptrend. In this scenario, investors can expect ADA to continue its ascent to retest the $1.73 swing point.<\/p>\n
\n - Transaction data shows that the uptrend for ADA will face massive resistance from $1.39 to $1.35.<\/strong><\/li>\n