On-chain Metrics Reveal a Decline in ADA Retail Interest. Shortly after the Cardano Shelley hardfork, the price of the token surged by more than 34%.
This is minus the year to date rise that took the token from the $0.023 level to the $0.1550 level. However, while the bullish build up from the beginning of the year to a few weeks before Shelley is sustainable, the build-up afterward isn’t. So, the token started to decline, losing most of its post Shelley gains. At the time of writing, Cardano ADA had recovered from the $0.105 level and was hovering above the $0.1250 level for a while.
Right now, the most significant support for Cardano ADA is at the $0.114 level. If the token falls below this level, there will be nothing else preventing it from falling lower against the USD and Bitcoin BTC near-term. The token is already falling against the USD and will most likely keep declining if it doesn’t gather the momentum it needs to move higher.
According to the ADA price analysis on IntoTheBlock, history has shown that moving below the $0.114 level will make things worse for Cardano ADA. So far, more than 12,000 Cardano addresses have bought 2 billion ADA tokens in the $0.1400 support area.
The $0.1400 level absorbs the selling pressure as the buyers are likely to gather momentum at this level and buffer the fall. If Cardano ADA doesn’t hold the line here, it will fall lower to the $0.085 for the first time in over a month. If the token breaks the $0.8500 support, the token will fall by at least 30%. This is only going to make things worst for ADA holders. In the next few days, we will be able to determine what direction the price of the token will take. Right now, ADA and many other cryptocurrencies are depending on Bitcoin BTC. Bitcoin has been having a bad time in the last few days.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
- Cardano ADA is Recovering Higher Against the USD as it Crosses Key Resistance at $0.1220
- Bullish Rally Will be Brief 1as On-chain Metrics show that the Token Might be Bearish Soon
The Cardano ADA token has been rising in price for the last few days but analysts believe that the bullish reversal is more of an anomaly than a fact. This is because on-chain metrics have revealed that the bears aren’t ready to leave the market yet. So, irrespective of the current price of the token, there is a strong chance that the bears are coming back soon and the bulls will step aside for them.
The on-chain metrics show that retail investors are starting to lose interest in the ADA token since all the hype surrounding it is wearing out. If the interest doesn’t peak soon, there is no telling how low Cardano ADA will go in the next few weeks.