Following a 16-day rally on the market, Cardano has faced the most serious resistance level on the chart that might become a reversal point for Ethereum’s rival, especially with the lack of support.
Despite breaking the 50-day moving average that has been acting like a guideline for Cardano for a long period of time, the asset has faced yet another resistance: the trendline that was formed back in September. At press time, the resistance stays at $0.43, while ADA trades at $0.43.
Despite the one day volume spike on Nov. 5, traders are slowly dropping support for the cryptocurrency as the volume profile indicator shows a descending tendency that will most likely lead to a reversal from the current price level.
In comparison to other digital assets, Cardano has not entered a consolidation channel that would later on become a foundation for a recovery. Instead, bears have been continuously pushing ADA down, and even a 24% price increase we saw recently is nothing compared to the losses Cardano investors had to witness since September 2021.
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Unfortunately, all the success ADA has had in the development field is not being translated to the market. Cardano remains one of the least profitable assets on the cryptocurrency market. According to data relevant in October, ADA’s profitability plunged below the critical 15% mark, pushing the majority of crypto investors, who usually aim for short-term profit, even further.
The most likely reason behind the unpopularity of ADA on the market is the inability to gain momentum at the correct time as the cryptocurrency has been having success in the development field while the market was in a depressive state.
Source: https://u.today/cardano-faces-its-final-test-after-reaching-fundamental-resistance-level