The cryptocurrency Cardano (ADA) faces the possibility of a substantial price decrease based on some indicators tracked on its blockchain. This observation aligns with a crypto expert’s recent technical analysis, who forecasted that ADA could dip down to around $0.4.
ADA Sees Decline In Trading Volume
According to Messari’s on-chain analysis, the ADA token’s trading volume has decreased significantly since its peak. On March 14, there were trades worth $1.53 billion. However, since then, there has been a consistent drop in daily trading volume, reaching $445.83 million on April 10.
In addition, information from IntoTheBlock indicates three other key on-chain indicators pointing towards a bearish outlook for the crypto token. The initial indicator is ‘Net Network Growth,’ which has witnessed a 0.17% rise over the past week. This metric signifies that there have been more departures than new arrivals among ADA wallet addresses during this time frame.
The second indicator, referred to as ‘In the Money,’ has experienced a 0.20% decrease over the past week. This figure signifies the count of Cardano (ADA) investors who currently enjoy profits based on the current cryptocurrency price. Additionally, there’s been a noticeable drop in substantial transactions on the Cardano blockchain recently, with a decline of 2.60%. These significant transactions denote deals exceeding $100,000, indicating that major ADA investors may be less enthusiastic about investing in the crypto token at present.
The pessimistic on-chain indicators add credibility to crypto expert Alan Santana’s earlier prediction that the price of ADA could fall anywhere between $0.44 and $0.35. Previously, he pointed out that ADA displayed bearish signs from a technical standpoint, which would remain until it identified a robust support level on the graphs.
ADA’s Derivatives Market Also Shows Bearish Outlook
According to Coinglass’s data, the bearish trend is dominating the ADA market. In the past 24 hours, a total loss of $632,720 was recorded in ADA‘s derivatives sector. The majority of these losses, approximately $502,170, came from long positions being liquidated.
In the meantime, the number of trades in ADA‘s derivatives market has decreased by over 11%, implying that crypto investors’ enthusiasm for ADA tokens is waning. Additionally, options trading volume tells a more pessimistic story, plummeting by 92% within the last day.
Currently, ADA is priced approximately at $0.59 during this composition, marking a 1% increase based on recent information from CoinMarketCap.
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2024-04-11 16:34