Cardano (ADA) Price Analysis: What’s Going On? 🤔
Cardano (ADA) saw some interesting activity recently. A bunch of coins that had been sitting dormant for a while started moving around. This caused the number of active addresses on the network to spike, meaning more people were trading ADA.
However, ADA’s price didn’t really budge, which could mean the recent activity wasn’t driven by bullish sentiment. 🤔
What’s The Deal With The Dormant ADA?
Santiment, a crypto data platform, found that the “age consumed” of ADA spiked to a seven-day high. This means that a lot of long-term holders decided to move their coins. Usually, these types of holders are pretty chill and don’t move their coins often. When they do, it can be a sign that something is brewing.
Is ADA Poised For A Decline?
While an increase in active addresses normally signals good things for an asset, the fact that ADA’s price hasn’t moved much after the spike in dormant coins suggests that a top might be forming. This could mean the price is about to go down.
Some technical indicators are backing up this bearish outlook:
- The Parabolic Stop and Reverse (SAR) indicator shows a bearish setup.
- The MACD indicator shows downward momentum, which can be seen as a sell signal.
If the downtrend continues, ADA could revisit its August 5 low of $0.27.
Could ADA Bounce Back?
It’s not all doom and gloom. If there’s a surge in demand for ADA, the price could climb above the resistance level of $0.39. If this happens, ADA could see a run-up to $0.48.
Disclaimer: This is just an analysis and is not financial advice. Always do your own research before making any investment decisions.
To learn more about Cardano (ADA), check out their website: https://cardano.org/
