- ADA’s price dropped 1.07% over the past 24 hours to trade at $0.2833 at press time.
- Data from IntoTheBlock indicates that on-chain signals for ADA are bearish.
- If ADA can break above the 9-day and 20-day EMA lines then it may flip $0.3013 into support in the next 48 hours.
The Cardano DeFi ecosystem has experienced significant growth, although some users have chosen to sell their holdings. According to DeFiLlama data, the total value of assets locked (TVL) on Cardano has reached a record high of 578 million ADA. Since the beginning of the year, there has been a substantial increase in decentralized finance activity on the Cardano blockchain, with more traders utilizing decentralized applications built on the network.
The thriving state of Cardano’s DeFi sector is evident in the impressive growth of its top 10 protocols, which have experienced double-digit increases over the past month, as reported by DeFillama. Furthermore, Cardano has witnessed the creation of over 1000 Plutus V1 smart contracts in 2023, indicating a surge in activity on the blockchain network.
Meanwhile, Santiment, the blockchain analytics firm, highlighted that a significant amount of ADA was sold at a loss in the past week, following profitable investments. The firm observed that ADA primarily saw high sales at lower prices.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 1.07%, taking its price down to $0.2833 at press time. The Ethereum-killer’s market cap stood at $9.908 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $208.107 million, following a 24-hour increase of 6.86%. Furthermore, the price of ADA was nearer to its 24-hour low of $0.2796, while the altcoin’s daily high stood at $0.2882.
The recent drop in ADA’s price pushed its already-negative weekly performance further into the red. As a result, the altcoin’s price was down 3.98% over the past 7 days.
Data from the blockchain insights platform IntoTheBlock showed that the majority of ADA holders were medium-term and long-term holders. According to the platform, 56% of ADA’s current holders are long-term investors (have been holding ADA for more than a year), while 40% of the altcoin’s holders are medium term investors who have held ADA for 1-12 months.
Furthermore, IntoTheBlock data suggested that on-chain signals were flagging bearish at press time. The platform revealed that Cardano’s net network growth stood at 0%. Meanwhile, the percentage of ADA investors that were in profit declined more than 2%. Lastly, the number of large ADA transactions dropped just over 30%.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price has been trading within a consolidation channel between $0.2765 and $0.3013 over the past week. Over the past 48 hours, however, the crypto’s price had printed lower highs, resulting in the formation of a bearish descending triangle on its 4-hour chart.
Should this pattern be validated in the next 24 hours, ADA may lose the support of the lower limit of the aforementioned price channel at $0.2765. A break below this price point may put ADA at risk of falling to $0.2594 in the next few days. On the other hand, a 4-hour candle close above $0.2910 will invalidate the bearish thesis.
In this scenario, ADA’s price may look to retest the resistance at $0.3013 in the following 48 hours. If history repeats itself, ADA may be rejected by this resistance level – causing it to drop to $0.2910. Conversely, a 4-hour candle close above $0.3013 will clear a path for ADA to rise to $0.3115.
Daily chart for ADA/USDT (Source: TradingView)
Looking at the daily chart for ADA, the crypto was trading below the 9-day and 20-day EMA lines at press time. It was able to break above the 9-day EMA line earlier in today’s trading session, but bears quickly forced the altcoin’s price back below the technical indicator.
If ADA is able to break above the two technical indicators, then it may have the support needed to flip the resistance at $0.3013 into support in the next few days. On the other hand, ADA failing to close a daily candle above the 9-day and 20-day EMA lines within the next 48 hours may lead to ADA dropping below the support at $0.2765 in the coming week.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
Read More Crypto Price Predictions:
- XRP Price Prediction 2023-2030: Will XRP Price Hit $1 Soon?
- Cardano Price Prediction 2023-2030: Will ADA Price Hit $1.5 Soon?
- Cronos Price Prediction 2023-2030: Will CRO Price Hit $0.25 Soon?
- Dogecoin Price Prediction 2022-2030: Will DOGE Price Hit $0.35 Soon?
- Terra Luna Classic Price Prediction 2023-2030: Will LUNC Price Hit $0.0003 Soon?