As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen my fair share of bull runs and bear markets. The recent dip in Cardano (ADA) price, despite its impressive fundamental developments, is not uncommon in this volatile space.
1) The value of Cardano dipped beneath a significant barrier level, causing traders to initiate Short positions in expectation of further decreases. Simultaneously, Binance announced its readiness for the Chang hard fork, moving it up so that other exchanges could better prepare. As a result, ADA‘s price fell by 1.1% over the past day, currently standing at $0.3637.
DAA, Whale Activity Hints Cardano Price Rally
As a researcher, I observed an uptick in whale transactions for Cardano on August 27. According to Santiment, there were 89 transactions exceeding $100,000, suggesting a substantial rise in whale activity. This is the most significant surge since August 2, implying that it occurred while the price of Cardano was declining. This unusual pattern might indicate that whales could be amassing ADA.
Furthermore, information from IntoTheBlock indicates that the number of daily active Cardano addresses (DAA) has risen by approximately 16.91% within the past 24 hours. This rise now totals 23,523 DAA. Given the surge in large transactions, it seems possible that new whales may be investing in ADA, which could potentially affect Cardano’s price.
Contrarily, the volume of Cardano seems to be decreasing, even after a highly successful demonstration of Hydra DOOM during the RareEvo Blockchain event held in Las Vegas.
Based on findings from Messari Research, it appears that the number of transactions on the Cardano network has been decreasing since the peak of the March mini-bull run. On August 27, the transaction volume for ADA reached its second lowest point this year, with a total of $5.29 billion, only surpassed by the volume recorded on August 12.
As a researcher, I’ve observed an upward trend in Daily Active Addresses (DAA) recently, but it pales in comparison to the significant decrease we’ve seen Year-to-Date (YTD). At the peak of the March bull run, Cardano boasted approximately 71,223 active addresses. Regrettably, this figure has plummeted by more than 66%, a decline that mirrors the reduction in transaction volume.
ADA Price Prediction
It appears that Cardano may be heading for a possible trend reversal towards a decrease, as it couldn’t maintain its previous bullish energy. The value has fallen beneath its 50-day Exponential Moving Average (EMA), suggesting there could be growing bearish influence in the market.
In simpler terms, the moving average convergence divergence (MACD) line is higher than the signal line right now, but they seem to be getting closer – a sign that the MACD may soon cross below the signal line. The histogram, which shows the strength of upward price movements, is currently weakening, hinting at an upcoming bearish crossover. This could mean that the bullish trend is losing steam and there might be a potential for further price drops.
The possible price of Cardano might find a base near $0.30, considering that it has shown strength as a support level in the past and may attract attention if the trend continues downward. Conversely, should the bulls regain control and spark a rally, the value of ADA could encounter resistance around $0.3747. Overcoming this hurdle might suggest a change in the market’s direction back towards bullish sentiment.
As a researcher, I’m observing that while Cardano’s fundamentals show promising growth, its price trajectory remains bearish at present. The actions of futures traders, who are currently opening shorts, could potentially exacerbate this downtrend. However, it’s encouraging to note an uptick in whale activity and daily active addresses. This increased engagement might indicate that they are amassing Cardano, which could signal that the current drop may be temporary, suggesting a potential reversal in the near future.
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2024-08-28 02:52