The cryptocurrency market is still in a phase of consolidation, while most of the coins this week saw some minor advances. Prices appear to be gradually rising despite some bearish sentiments hovering around.
From the beginning of 2023, Cardano’s ADA has gained by nearly 50% and is currently trading at $0.39. Nonetheless, Cardano has encountered stiff competition at the $0.40 mark. In particular, Cardano’s digital asset has hit a “colossal” sell wall worth 3.85 billion ADA.
Analyst and cryptocurrency researcher Ali Martinez highlighted the IntoTheBlock data to show how “Cardano whales” (those holding between one and ten million) had just purchased 150 million ADA tokens worth $57 million.
As Ali Martinez showed, there is a lot of selling pressure between $0.40 and $0.42. According to Ali, there is a significant 3.85 billion $ADA sell wall between $0.40 and $0.42. He continued by saying that if ADA can surpass this barrier, nothing should stand in the way of a price increase.
He wrote, “#Cardano | A colossal 3.85 billion $ADA sell wall stands between $0.40 & $0.42! Slicing through this barrier may spark a bull rally for #ADA, as it faces minimal resistance ahead.”
A “sell wall” is a big sell order or a collection of sell orders at a specific price level that acts as resistance and prevents the asset’s price from increasing until the full sell volume is completed. This shows that little resistance would remain in the way of Cardano’s rise further up.
Talking about ADA’s ecosystem, the most recent update states that users of the Cardano blockchain and wallet will soon have access to EVM smart contracts. Milkomeda, a network that enables the construction of EVM contracts on other blockchain platforms, broke the news for the first time last week.
Source: https://coinpedia.org/price-analysis/cardanos-ada-price-may-spark-a-bull-rally-if-this-happens/