- ADA’s price has fallen almost 10% in the past three days.
This has occurred despite the surge in its daily active addresses.
As an experienced analyst, I believe that ADA‘s recent price decline is concerning despite the surge in its daily active addresses. The altcoin’s bullish momentum was disrupted after it failed to sustain gains above the $0.48 resistance level.
The cryptocurrency Cardano (ADA) has retreated to the $0.44 mark following a short-lived surge above this level, which occurred as it exited a descending triangle formation on May 2nd.
“ADA‘s price was analyzed on a daily chart by AMBCrypto, revealing that the altcoin surged out of a descending triangle formation following its touch of support on that particular day, indicating an uptrend.”
Starting on May 4th, the price of the coin reached its highest point at $0.48. Following this peak, the coin began to decrease. At the current moment, a single ADA coin costs around $0.44, representing an 8% reduction in value over the past three days.
The current demand for ADA is not enough
As an analyst, I’ve conducted an on-chain analysis of ADA and noticed an intriguing trend: while there was a surge in the number of active addresses trading the altcoin over the last few days, the price of ADA has still declined.
Based on Santiment’s findings, there has been a 15% increase in the daily count of unique ADA wallet addresses with confirmed transactions since May 3rd.
At the time of writing, the important signals indicating the demand for ADA were all below their neutral thresholds, suggesting a decrease in interest.
The RSI value for ADA was calculated as 38.14, whereas the MFI reading for it amounted to 31.84.
In these given values, the indicators signaled a strong preference among market participants for offloading their ADA coins instead of buying more.
The disparity between price fluctuations in ADA and its network activity could be attributed to the persistent unfavorable opinion surrounding this altcoin. At present, its Sentiment Score stands at a relatively low -0.74.
The explanation for the unfavorable opinions isn’t unlikely. Based on CoinMarketCap’s statistics, ADA has lost nearly 30% of its worth over the past month. Consequently, it poses a challenge for day traders to make a profit each day.
Over the past month, the profit-to-loss ratio of ADA‘s daily trading volume, calculated using a 30-day moving average, showed that traders experienced more losses than gains.
Read Cardano’s [ADA] Price Prediction 2023-24
As of this writing, the metric’s value was 0.9.
As an analyst, I found that out of every ten transactions with losses in the previous month, only nine had subsequent profits.
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2024-05-08 01:11