Cardano (ADA) is facing a prolonged decline as it approaches a crucial support level. Currently the tenth largest cryptocurrency by market cap, ADA has seen downward pressure increase over the past 30 days. At present, ADA is trading at $0.43, positioned at the lower trend line of a descending triangle, a critical support level that could determine its short-term future.
Why Are Daily Addresses on Cardano Decreasing?
The broader market downturn and a steady decrease in ADA demand have impacted the popular altcoin. Observations using the 30-day moving average (MA) show ADA’s daily active addresses fell by 25% last month, suggesting fewer unique addresses are interacting with the token on a daily basis. This reduction in demand may be influenced by the low profits from ADA investments during the same timeframe.
What Does Current Data Indicate for ADA?
Evaluating ADA’s daily profit/loss transaction volume ratio, using the 30-day MA, reveals a price of 0.87, indicating that only 0.87 of every ADA transaction was profitable last month. The 1-day chart shows a descending triangle formation, and momentum indicators suggest a continuation of the downtrend. The relative strength index (RSI) remains below the neutral line of 50.0, signaling a preference for distribution over accumulation among investors.
What Should Investors Watch Out For?
Investors should monitor the following:
- ADA’s price reaction at the $0.43 support level.
- Changes in the daily active address metric.
- Performance of the RSI and other momentum indicators.
- Price movements below the next critical levels at $0.42 and $0.36.
These factors could provide insights into ADA’s potential recovery or further decline.
Conclusion
Cardano’s current trajectory suggests continued downward movement unless bullish support intervenes. Investors should keep an eye on key indicators and support levels to make informed decisions.