Cardano’s (ADA) price recently experienced a significant drop, failing for the second time in a month to close above the $0.40 level. The altcoin’s price fell by 11% within 48 hours, bringing it down to around $0.35. 

Despite this sharp decline, ADA still has a chance to recover. The possibility of the cryptocurrency regaining lost ground is presenting an opportunity for traders and long-term investors alike.

Cardano Has Profits to Look Forward To

The recent downturn in Cardano’s price has led to a loss in profitability for approximately 3.31 billion ADA tokens. According to the Global In/Out of the Money (GIOM) metric, this supply, worth over $1.1 billion, was acquired when Cardano was trading between $0.35 and $0.37. This supply currently sits underwater, but if ADA manages to recover above the $0.37 mark, it could return to profitability.

As Cardano approaches this crucial price level, investor sentiment will be key in determining whether the cryptocurrency can bounce back. A recovery above $0.37 would improve profitability for those holding ADA as well as reinforce confidence among investors, potentially leading to further price gains.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

Despite the recent 11% decline, Cardano’s realized profit/loss indicator suggests that investors are remaining composed. The lack of significant spikes in the indicator signals a low level of panic selling. 

This stability is crucial, as it indicates that ADA holders are opting to “HODL” their positions rather than selling at a loss. Such behavior from investors is encouraging, as it suggests that confidence in Cardano’s long-term potential remains intact.

ADA Price Prediction: Finding Momentum

At the time of writing, Cardano is trading at $0.35, hovering just above the key support level of $0.34. Should ADA successfully defend this support, it stands a strong chance of bouncing back toward the $0.37 resistance level. A recovery here could open the door for further upward momentum, allowing Cardano to reverse its recent losses.

If ADA manages to flip $0.37 into support, the 3.31 billion ADA tokens bought between $0.35 and $0.37 will turn profitable. This scenario could drive renewed bullishness among investors, reducing selling pressure and supporting a sustained rally in price.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

However, if Cardano fails to break through the $0.37 resistance, it may struggle to gain upward momentum, keeping the price consolidated below this critical barrier. A drop below the $0.34 support would invalidate the bullish outlook, potentially leading to more significant losses and further discouraging short-term traders.

Hamster Kombat’s (HMSTR) performance since its airdrop and subsequent listing on cryptocurrency exchanges has been underwhelming. Despite the initial hype and excitement surrounding the project, the profit-taking activity that followed has caused HMSTR price to plummet significantly over the past week. 

With growing bearish sentiment toward HMSTR, the Toncoin-based token is poised to extend its decline. This analysis delves into what you need to know. 

Hamster Kombat Fails To Impress Holders

On September 26, Hamster Kombat distributed 60 million HMSTR tokens to its game players, after which it began trading on cryptocurrency exchanges at $0.014.

However, massive selloffs quickly caused its price to plummet within minutes. The token has since continued its downtrend, declining 50% over the past six days. As of this writing, HMSTR trades at $0.0047, marking an 11% drop in the last 24 hours.

Since the airdrop, HMSTR has faced a bearish bias, reflected in its negative weighted sentiment, currently at -0.16. This metric tracks the overall market mood, and negative sentiment suggests that most social media discussions are driven by fear, uncertainty, and doubt—often a precursor to a prolonged downward trend.

Read more: Top 8 Hamster Kombat Alternatives in 2024

Despite HMSTR losing half its value in under a week, its futures traders remain optimistic. Coinglass data shows that since HMSTR became tradeable, its funding rates have stayed positive, indicating that more traders are betting on a price rally than on a decline.

However, many of these long positions have not been profitable, as liquidations continue. Since September 26, $9 million worth of HMSTR long positions have been liquidated due to the token’s ongoing price drop.

HMSTR Price Prediction: More Decline on the Horizon

Readings from HMSTR’s hourly chart signal that the token is poised to extend its decline. Its Directional Movement Index (DMI), which measures the strength of a trend, supports this bearish outlook. At press time, the token’s positive directional indicator (blue) rests below its negative directional indicator (red). 

When positioned this way, the asset’s price is experiencing more downtrends than upward movements. Traders view this as a bearish signal, suggesting that sellers are stronger than buyers. If the bears remain in control, they may cause HMSTR’s price to plummet to a low of $0.0010.

Read more: 7 Best Exchanges To Buy and Sell Hamster Kombat (HMSTR) in 2024

However, if market sentiment shifts from bearish to bullish, HMSTR’s price could surge by 59%, reaching the resistance level at $0.0075.

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