Cardano Price Forecast: ADA Could Unlock $1.2 Billion in Profits as It Eyes Key Resistance at $0.37
Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...
The Cardano price has dipped by 1% in the past 24 hours, dropping to $0.339 as the crypto market as a whole loses 2.5% today.
ADA is also down by 1% in a week and by 13.5% in a fortnight, although the altcoin holds on to a 35% gain in a year.
It may have underwhelmed in recent months, but its In/Out of the Money Around Price indicator currently suggests that a relatively modest rise to $0.37 would see around 3.5 billion ADA tokens – worth over $1 billion – enter profit.
This highlights Cardano’s considerable potential, with the coin having some of the strongest – and most untapped – fundamentals in the market.
Apart from a brief flurry a few days ago, ADA’s relative strength index (purple) has spent much of the past week under 50, a sign of overselling.
This is even more noticeable with the coin’s 30-period moving average (orange), which has been well below the 200-period average (blue) for quite some time.
In other words, ADA’s technicals signal that the coin is selling substantially below a ‘fair’ value, with traders likely to make a tidy profit if they buy the token now.
This is also the gist of the aforementioned In/Out of the Money Around Price indicator, which shows that traders have bought around $1.2 billion in ADA between its current price and the $0.37 resistance level.
What this means is that, if ADA rises to $0.37 in the next few weeks, the holders of these tokens will be in profit.
Of course, given that they bought at a price between $0.339 and $0.37, they will not make $1.2 billion in profits in total.
Assuming that they
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