Cardano (ADA) is currently struggling to break through key resistance levels despite recent network upgrades. The latest Chang hard fork upgrade has not resulted in the expected price movements. While Bitcoin (BTC) volatility on August 14 briefly dragged ADA’s price down, a swift recovery followed. However, spot trading data still positions ADA in a downtrend, compounded by a stagnant user base.
Cardano’s Relative Strength Against Bitcoin
In the past day, ADA’s price dipped by 1.1% to $0.337 but showed a 3.8% increase against Bitcoin. This trend is consistent with the market, similar to XRP‘s 2.8% and Solana’s 4.3% gains against BTC. Despite this, the overall sentiment around Cardano remains cautious.
Network data and investor behavior indicate a challenging period for Cardano. Despite the excitement surrounding the Chang hard fork, the number of active wallet addresses has remained static at 4.45 million over the past year, pointing to a lack of growth. In contrast, long-term investors hold 40% of ADA’s total supply, reflecting strong confidence in the network.
What Are the Expectations for ADA’s Price?
Investor sentiment, as highlighted by Coinglass Liquidation Map data, leans negative. On August 14, liquidation leverage for long positions totaled $2.28 million, while short positions amounted to $3.05 million. This discrepancy suggests a market expectation of further price declines for ADA.
Key Insights for Investors
- Cardano’s price may fall to the $0.3 level, a critical psychological support.
- Long-term holders owning 40% of ADA indicate strong network confidence.
- Negative market sentiment is prevalent, with higher short position liquidations.
- Technical indicators, such as the MACD, support the ongoing downtrend.
ADA is expected to test the $0.3 level, which could serve as a crucial support point. Holding this level might offer a recovery opportunity. However, technical indicators like the MACD remain in the negative zone, signaling continued downward momentum.