Cardano At Risk Of Crashing To $0.4 As Important Metrics Turn Bearish
Cardano (ADA) risks a significant price decline as several on-chain metrics paint a bearish sentiment for the crypto token. This coincides with a recent technical analysis by a crypto analyst, who predicted that ADA could drop to as low as $0.4.
ADA Sees Decline In Trading Volume
Data from the on-chain analytics platform Messari shows a decline in ADAs trading volume from its recent peak. The crypto token recorded a daily trading volume of $1.53 billion on March 14 but has been on a steady decline since then, recording a daily trading volume of $445.83 million on April 10.
Furthermore, data from IntoTheBlock shows three other on-chain metrics signaling a bearish sentiment for the crypto token. The first is the Net Network Growth, which has experienced a 0.17% increase in the past week. This metric measures the total number of ADA addresses, meaning more users have left the ecosystem than new ones have come this last week.
The second metric is the In the Money, which has seen a 0.20% decline in the last seven days. This metric measures the number of ADA holders that are currently in profit at the crypto tokens price level. Meanwhile, large transactions on the Cardano network have also dropped lately, with a 2.60 decline. These large transactions refer to transactions that are over $100,000, suggesting that ADA whales are cooling off on investing in the crypto token.
These bearish on-chain metrics further strengthen crypto analyst Alan Santanas analysis, in which he mentioned that ADA could drop between $0.4444 and $0.3450. Back then, he noted that ADA still had a bearish outlook from a technical analysis perspective, and this outlook would extend until ADA found a strong support level on the charts.
ADAs Derivatives Market Also Shows Bearish Outlook
Data from Coinglass shows that the bears are also firmly in control of the ADA ecosystem. In the last 24 hours, $632,720 has been wiped out from ADAs derivatives market, with long positions ($502,170) accounting for most of these liquidations.
Meanwhile, trading volume in ADAs derivatives market has dropped by over 11%, suggesting a declining interest in the ADA token among crypto investors. Furthermore, the Options trading volume paints a more bearish picture, dropping by 92% in the last 24 hours.
At the time of writing, ADA is trading at around $0.59, up over 1% in the last 24 hours according to data from CoinMarketCap.
Read more: https://www.newsbtc.com/news/cardano/cardano-crashing-to-0-4/
Text source: NewsBTC
