Early Friday morning, some previously dormant Cardano (ADA) coins moved, along with a spike in the coin’s daily active addresses, indicating increased trading activity.
However, the lackluster price response of ADA over the past 24 hours suggests that the coin’s movement is unlikely to be bullish.
ADA tokens on the move
According to data from Santiment, ADA’s spending age rose to a seven-day high of 6.33 billion on Friday morning. This metric tracks the movement of long-term holdings, so a spike is notable because long-term holdings rarely move their coins. When they do, a change in market trends often precedes it.
The increase in ADA’s spending age is accompanied by an increase in the number of active addresses currently trading the altcoin. According to data from Santiment, the number of addresses involved in ADA trading is 54,200, the highest single-day number since March 6.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
While an increase in the number of active addresses for an asset is usually a bullish sign, if the price of ADA is declining after a rally in its age, it suggests that a local peak may have been reached, indicating that the coin is likely to decline further.
Cardano Price Prediction: More reduction
The readings from the 1-day chart of Cardano suggest that this altcoin may be extending its downtrend. For example, the points on the coin’s Parabolic Stop and Reverse (SAR) indicator, which highlights potential trend direction and reversal points, are above the price. When these points are aligned like this, the market trend is bearish and the price decline is expected to continue.
Additionally, the coin’s Moving Average Convergence Divergence (MACD) indicator setup shows that the MACD line (blue) is below the signal (orange) and zero lines, indicating that the ADA price is in a downtrend.
Traders often interpret this as a sell signal, which puts negative pressure on the asset price. If the downtrend continues, the ADA price will rise again to the low of $0.27 on August 5th.
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
However, the resurgence of ADA demand will invalidate the above bearish prediction. If ADA sees a rally in buying activity, this could push the price above the resistance level of $0.39. A breakout of this level could lead to a rise to $0.48.
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