Cardano (ADA) Faces Decline Amidst Low Buying Pressure
As a cryptocurrency investor, you may have noticed the recent decline in Cardano’s (ADA) price, which has resulted in it dropping below key moving averages. This decline signals a lack of buying pressure in the market, potentially leading to further downward movement.
Traders Unfazed by Cardano’s Downtrend 📉
- Since reaching a peak on May 21, ADA’s price has been on a downward trend, currently trading at $0.45.
- The 11% drop in ADA’s price can be attributed to reduced demand for the altcoin.
- On-chain data reveals a 17% decrease in the daily count of active addresses transacting with ADA.
- Additionally, new demand for ADA has decreased by 22% recently.
A Reflection of the Market Downtrend 🌐
- The decline in ADA’s demand mirrors the overall market trend, with global cryptocurrency capitalization down by 2% in the past week.
- Whale activity in the ADA market has also taken a hit, with a 69% decrease in daily transactions above $100,000.
- Declining whale activity may signal a lack of confidence among large investors, impacting overall market sentiment.
ADA Price Prediction: Bears Take Control
Amidst the downtrend, ADA’s Elder-Ray Index continues to show negative values, indicating weakening bull power and strengthening bear control. Sellers are exerting more influence on the price, leading to a decline in buying pressure.
Confirmation of Downtrend in ADA Market 📉
- The falling Accumulation/Distribution (A/D) Line for ADA confirms the downward trend, with high selling pressure contributing to the price decline.
- Currently at 48.45 billion, ADA’s A/D Line has dropped by 0.3% since May 20.
- If the selling pressure persists, ADA’s price could drop to $0.44 or even test the long-term support level at $0.42.
Hot Take: The Future of ADA Amidst Bearish Sentiment 🐻
As you navigate the Cardano market, it’s crucial to monitor the ongoing downtrend and the impact of low buying pressure on ADA’s price. Stay informed with market analysis and be prepared for potential price fluctuations in the coming days.
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