As a seasoned crypto investor with a knack for deciphering market trends and understanding the intricacies of blockchain technology, I must admit that Cardano’s current situation has left me somewhat conflicted. The price surge was indeed promising, but the delayed Chang hard fork and the subsequent bearish sentiment have cast a shadow over ADA‘s bullish momentum.
Last week’s closing days and the weekend saw an upward trend in Cardano‘s price. On a daily scale, the asset experienced a strong surge, breaking through a vital resistance level. However, only one more hurdle remains before we can expect substantial growth in ADA price. Although the outlook appears positive, Cardano has encountered a problem during development, as the Chang hard fork has been postponed by an additional four days. This delay could potentially affect investor confidence, causing ADA to lose its bullish momentum. Currently, Cardano is trading at $0.3857, marking a 3.7% decrease in the last 24 hours.
Negative Sentiment is Affecting Cardano Price
After the Chang hard fork delay, there have been some indications that the price of ADA has slowed down. This includes a decrease in network profitability and trading volume.
According to Santiment’s data, the daily profit ratio for the Cardano network dipped to 0.88, which is its lowest point since August 18. This implies that for every 1 ADA transaction resulting in a loss, approximately 0.88 transactions were profitable. Essentially, this suggests that the majority of ADA on-chain traders are experiencing losses with their trades.
The downward trend of the Network Profit/Loss (NPL) ratio over the last three days also indicates that coins which have moved to new addresses have been disposed of at a cumulative loss.
Additionally, data from Coinglass indicates a decrease of 2.21% in Cardano’s open interest (OI) and a 3.03% drop in its price over the past 24 hours. This trend seems to indicate that traders are liquidating their Long positions, possibly at a loss, as supported by Santiment’s NPL data. It’s likely that these traders are then choosing to open Short positions instead.
Based on current blockchain data, it appears that Cardano’s price could potentially decrease more within the next 24 hours due to a shift towards bearish sentiments among market participants. But if ADA manages to maintain its value above the current level until the storm passes, investors still holding onto the asset may witness a significant jump of up to 78% in its price.
ADA Price Analysis: Key Levels to Watch for 78% Spike
On the graph of Cardano’s price, we can see it’s been dropping in a pattern called a descending channel. At present, the price is hovering close to the upper line of this channel, which could indicate a possible zone of resistance around the $0.40 mark.
The green line (50-day Exponential Moving Average) is below the black line (200-day Exponential Moving Average), suggesting a continued downtrend. Yet, the price movement seems to be aiming to stay above the green line, hinting at a potential change in direction. The value of ADA may encounter resistance around $0.40-$0.42, and the 200-day EMA is located at $0.4355.
The Chaikin Money Flow (CMF) currently stands at 0.21, showing signs of strong buying activity and potentially accumulation. If this trend continues, it might lead to a possible price surge or an upward breakout in the future.
If Cardano’s price manages to end the day above its 200-day moving average ($0.4355) with substantial trading volume, it might indicate a significant shift in the longer-term trend, making it a good opportunity for long-term investment. Potential future prices could range from $0.50, $0.60, and even $0.70 if the reversal is indeed confirmed, offering potential benefits for long-term returns.
If the price of ADA can’t maintain the 50 EMA as its support, the middle line around $0.35 within the channel could serve as a crucial support point. Should the price drop more, it may find additional support around $0.30 at the channel’s lower edge.
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2024-08-26 06:04