- As at press time, ADA was up by 2.21% but all is not good.
ADA’s struggles root from balance by holding and price action.
As a seasoned analyst with over a decade of experience in the crypto market, I’ve seen my fair share of rollercoasters. The Cardano [ADA] situation at press time presents an intriguing conundrum. While ADA has managed a 2.21% rise, it’s important not to overlook its underlying struggles.
The Cardano [ADA] environment persists in encountering hurdles even as other cryptocurrencies recuperate following their setbacks, despite the thrilling launch of its Ouroboros Leios update.
Cardano’s price rose by 2.21% in the past 24 hours, trading at $0.3558 at press time.
Following the unveiling of the Ouroboros Leios update, designed to boost Cardano’s transaction speed beyond 1500 transactions per second, this price movement has occurred.
Furthermore, during the Voltaire period, Cardano executed its first major update, incorporating community-led governance and on-chain voting mechanisms. As the Cardano Governance Workshop moves forward with Version 2.1, the network’s expansion is evident, having processed a total of 96 million transactions to date.
Despite these positive developments, many key metrics for ADA remain unfavorable.
Declining balance by holding
One of the concerning metrics is the declining balance by holding in USD. The percentage change in balances held has consistently moved into red territory, with this month being no exception.
Smaller Cardano traders holding less than a dollar experienced a slight 0.23% rise, while significant drops were observed in the amount held by other groups of traders.
Major investors owning more than a million dollars’ worth of ADA experienced reductions of up to 18% collectively. This suggests that ‘whales,’ who significantly influence the crypto market, may be selling off their ADA holdings. Such a move might suggest potential difficulties for ADA in the near future.
Can ADA break out of its symmetrical triangle?
Despite the gloomy outlook for Cardano, there’s a glimmer of hope. The way ADA is behaving within the symmetrical triangle formation indicates that a possible breakout might be imminent.
Starting from August 5th, the ADA/USDT pair has been experiencing a period of consolidation where neither an upward nor downward breakout has been successful on three separate occasions, as both the resistance and support lines have consistently prevented a move beyond them.
Currently, the rejection from the upper trendline may eventually yield due to the growing strength observed across the wider cryptocurrency market.
Should ADA successfully surge and validate this rise by revisiting the breakout point, it might align with the bullish tendencies observed in other digital currencies.
From my perspective as a crypto investor, should Cardano (ADA) fail to hold its current levels and instead show signs of forming lower highs and lower lows, it might indicate a continued downward trend. This prediction is reinforced by the RSI Divergent indicator, which still suggests bearish sentiments for ADA.
Positive funding rates provide hope
A promising factor for ADA is the Over-the-Counter (OTC) funding rate, which is currently set at 0.0097%. This means that traders are actually paying to keep their long positions open, implying a strong belief in ADA’s potential future price growth, as seen by long-term investors.
But if ADA is to experience a complete price flip, it will require more conditions to fall into place, including an ongoing surge in ADA’s trading activity and increased backing from the broader cryptocurrency market.
Under certain circumstances, it’s possible that the price of Cardano might increase due to beneficial lending rates and a broader market upswing.
Read Cardano’s [ADA] Price Prediction 2024–2025
Although Cardano (ADA) has been encountering some notable hurdles lately, such as a decrease in large investor holdings and struggles to surpass crucial price barriers, there remain potential elements that might propel its value upwards.
A favorable financial flow, possible surges, and market rebounds might give Cardano (ADA) the boost it needs to reclaim its upward trend, potentially leading to a more optimistic price forecast.
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2024-09-24 12:08