A company that is changing the way the world mines bitcoin

NewsBTC 2024-10-01 23:00:18

Cardano (ADA) Faces Risk Of 30% Drop – On-Chain Metrics Confirm A Slow Demand

Cardano has seen a strong 26% surge following the Federal Reserve’s interest rate cuts announcement two weeks ago, boosting optimism across the crypto market. Analysts and investors are questioning the sustainability of the recent surge. Despite the initial rally, Cardano’s price failed to close above a key resistance level, signaling potential weakness in the uptrend. Related Reading: Solana (SOL) ‘Could Go Parabolic’ Once It Breaks $200 Resistance – Analyst On-chain data from Santiment reveals a decline in demand for ADA, adding to investor caution. Decreased network activity and buying pressure raise doubts about the sustainability of the current rally. As the market awaits further developments, investors are closely watching for signs of a reversal or continuation of the uptrend, understanding that ADA’s next move could set the tone for its performance in the weeks ahead. Cardano Indicator Shows Concerning Data Cardano faces a significant risk of a 30% drop to its yearly low of around $0.27, as on-chain data from Santiment reveals rising selling pressure and diminishing demand. The warning signs for ADA’s price have become clearer, with its daily active-address (DAA) divergence showing a negative reading of -43.3% at the time of writing. This metric, which tracks the correlation between an asset’s price movements and changes in its daily active addresses, has remained negative since September 7, indicating a troubling trend for Cardano. The negative DAA divergence suggests that much of ADA’s rally this month, following the Federal Reserve’s interest rate cuts, has been fueled more by broader market sentiment than by any specific demand for ADA itself. This lack of organic demand increases the likelihood of a steep correction shortly. Without sustained buying pressure, Cardano’s price could drop sharply as traders begin to lock in profits, further driving prices downward. Related Reading: SUI Ready To Test $2 Resistance – Bullish Pattern Suggests New ATH Soon If ADA fails to break above its current resistance level of around $0.41, analysts expect a deeper correction, potentially pushing the price back to the yearly low of $0.27. With weakening demand and increasing selling pressure, Cardano’s near-term outlook looks uncertain, and traders are bracing for further downside risk. ADA Price Action: Testing A Crucial Supply Level ADA trades at $0.38, following a 10% dip from its daily 200 exponential moving average (EMA) at $0.41. This level has become a crucial resistance area, as the price formed a new local high around this zone. ADA must reclaim the $0.41 level and push above the next key resistance at $0.45 to confirm a bullish trend for the coming weeks. Successfully breaking past these levels would signal renewed strength, giving the bulls control and potentially leading to higher prices. However, if ADA fails to push above these critical levels, the altcoin could face further downside pressure. A failure to reclaim $0.41 and surpass $0.45 would likely result in increased selling, triggering a potential 30% drop. In such a scenario, ADA would be at risk of revisiting its yearly low of around $0.27. Related Reading: Dogecoin Could Target $0.20 Soon, Analyst Predicts – Is DOGE Primed For A Rally? Given the current market uncertainty and declining demand, traders are carefully watching ADA’s price movements, as the next few days could be pivotal for determining whether a bullish breakout or a deeper correction is on the horizon. Featured image from Dall-E, chart from TradingView

La maggior parte ha letto le notizie

Ethereum Price Extends Losses: Is The Downtre...
2024-10-02
Ripple Issues an Important Warning for its Up...
2024-10-02
Tether USDT dominance
2024-10-02
Elon the Manipulator Solana Memecoin Will Exp...
2024-10-02
BitGo USDA custody
2024-10-02
Bitcoin tanks, gold rebounds as Israel vows I...
2024-10-02
Bitwise Spot XRP ETF Was Proposed With Commun...
2024-10-02
Fenbushi Capital crypto asset sale
2024-10-02

Notizie correlate

Will Binance’s New Regulatory Win Help BNB Price A...
02 Oct 2024
Astar Evolution: Future Roles and Directions of th...
02 Oct 2024
What Is the Best Way To Secure My Bitcoin
02 Oct 2024
Bitcoin Tanks $4,000 Amid Middle East Conflict; Qu...
02 Oct 2024
Bitcoin Price Surge to $63,000 Could Trigger $1.01...
02 Oct 2024
Binance Secures Regulatory License in Kazakhstan f...
02 Oct 2024

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta