Cardano At Risk Of Crashing To $0.4 As Important Metrics Turn Bearish
April 11 2024 - 11:00AM
NEWSBTC
Cardano (ADA) risks a significant price decline as several on-chain
metrics paint a bearish sentiment for the crypto token. This
coincides with a recent technical analysis by a crypto analyst, who
predicted that ADA could drop to as low as $0.4. ADA Sees Decline
In Trading Volume Data from the on-chain analytics platform Messari
shows a decline in ADA’s trading volume from its recent peak. The
crypto token recorded a daily trading volume of $1.53 billion on
March 14 but has been on a steady decline since then, recording a
daily trading volume of $445.83 million on April 10. Related
Reading: Here Are The Drivers Behind The Bitcoin Price Crash To
$68,000 Furthermore, data from IntoTheBlock shows three other
on-chain metrics signaling a bearish sentiment for the crypto
token. The first is the ‘Net Network Growth,’ which has experienced
a 0.17% increase in the past week. This metric measures the total
number of ADA addresses, meaning more users have left the ecosystem
than new ones have come this last week. The second metric is
the ‘In the Money,’ which has seen a 0.20% decline in the last
seven days. This metric measures the number of ADA holders that are
currently in profit at the crypto token’s price level. Meanwhile,
large transactions on the Cardano network have also dropped lately,
with a 2.60 decline. These large transactions refer to transactions
that are over $100,000, suggesting that ADA whales are cooling off
on investing in the crypto token. These bearish on-chain
metrics further strengthen crypto analyst Alan Santana’s analysis,
in which he mentioned that ADA could drop between $0.4444 and
$0.3450. Back then, he noted that ADA still had a bearish outlook
from a technical analysis perspective, and this outlook would
extend until ADA found a strong support level on the charts.
ADA’s Derivatives Market Also Shows Bearish Outlook Data from
Coinglass shows that the bears are also firmly in control of the
ADA ecosystem. In the last 24 hours, $632,720 has been wiped out
from ADA’s derivatives market, with long positions ($502,170)
accounting for most of these liquidations. Related Reading:
Crypto Experts Predict Massive Price Surge For XRP Price, Is $20
Possible? Meanwhile, trading volume in ADA’s derivatives market has
dropped by over 11%, suggesting a declining interest in the ADA
token among crypto investors. Furthermore, the Options trading
volume paints a more bearish picture, dropping by 92% in the last
24 hours. At the time of writing, ADA is trading at
around $0.59, up over 1% in the last 24 hours according to data
from CoinMarketCap. ADA price at $0.58 | Source: ADAUSDT on
Tradingview.com Featured image from The Independent, chart from
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