Cardano Faces Resistance at $1.20 Amid Persistent Selling Pressure

Recent trading sessions have seen ADA caught between opposing bullish and bearish market sentiment, with price movements reflecting this ongoing struggle. Experts have identified the $1.20 mark as a significant target for

, drawing on both technical signals and overall market trends. Yet, even with these positive expectations, sellers have largely remained in control, suggesting that it may be difficult for ADA to reach this level without overcoming substantial resistance.

Current on-chain data underscores a prevailing bearish stance, with an uptick in short-term selling activity and a decline in long-term ADA accumulation. While the $1.20 threshold continues to draw attention from market participants, achieving it will likely require a significant influx of buying momentum to reverse the existing negative trend.

Technical metrics provide additional insights into market behavior. ADA’s Relative Strength Index (RSI) has dipped into oversold territory, indicating the possibility of a rebound or a period of sideways movement. Nonetheless, as long as the price remains below crucial support zones, the bearish trend is expected to persist. The 50-day moving average is being closely watched by market participants, as it serves as an important indicator for ADA’s near-term trajectory. A decisive move above this average could signal a reversal, while dropping below it might intensify downward pressure.

Broader macroeconomic influences are also shaping sentiment across the cryptocurrency landscape. Although ADA’s price is mainly affected by its own fundamentals and technicals, global developments—such as shifts in interest rates and evolving regulations—continue to sway investor decisions. Notably, increased regulatory attention in major regions has prompted institutional investors to adopt a more cautious approach, with many holding back on new positions until greater regulatory clarity is available.

On-chain data also shows that ADA holdings are still largely concentrated among a handful of major investors—a trait common to numerous cryptocurrencies during periods of heightened volatility. Such concentration can amplify price fluctuations, as significant holders may choose to buy or sell in response to their strategic goals. The current dominance of bearish sentiment suggests that many of these large holders are opting to sell rather than accumulate at this time.

While ADA faces short-term difficulties, some analysts and long-term holders remain positive about its future prospects. They highlight continued advancements within the

ecosystem, including upcoming upgrades and new features, as promising signs for ADA’s long-term value. These enhancements are expected to boost the platform’s functionality and appeal, potentially attracting a broader user and developer base. However, it’s important to recognize that the effects of such progress may not be seen immediately, and price volatility is likely to persist in the short term.

To sum up, while ADA could potentially climb to $1.20, current market dynamics continue to favor sellers. Both investors and traders should approach the market with caution, paying close attention to technical indicators and overall trends. A strong change in sentiment could lead to a turnaround, but for now, the bearish perspective prevails.