- ADA Coin’s price has dipped below $0.24 for the first time since June 10th.
- Although the price has rebounded from the $0.24 support, it needs to close above $0.2748.
- Despite on-chain readings not indicating a definite decline, negativity surrounding BTC could lead to further drops in the coming days.
The price of ADA Coin, one of the largest PoS networks, has been on a steady decline this year. With fluctuations in Bitcoin’s price, could this lead ADA Coin to a new low? We examine the current ADA Coin price predictions based on on-chain and technical indicators.
Analysis of Cardano (ADA) Chart
ADA Coin was under seller control even before BTC’s decline due to its closing below $0.3. The price rebounded from the $0.24 support during the drop on August 17th, a similar support test it underwent during the SEC hit on June 10th. However, it is currently finding buyers from a point close to the bottom due to its inability to surpass $0.35 and the general market sentiment turning negative again.
To recover, it needs to close above $0.2748. If successful, the price could reclaim the $0.3 support. However, in a negative scenario, it could drop to its early 2021 price of $0.2 or below.
ADA Coin Reviews
Cardano’s price had a tough week as it dropped to double digits. This price drop can primarily be attributed to the bearish trend in the market, but a few other factors may have played a role. One such factor is the melting of network activities. Santiment’s chart revealed a drop in development activity over the past week, the reason for which was revealed in ADA’s weekly development report.
Interestingly, despite a decrease in ADA’s development activity, network activity remained high. This is evident from the stable number of daily active addresses. The price drop led to an increase in negative sentiment around the token in the market. Cardano’s popularity also decreased as social volume dropped. However, the bearish trend could soon end as ADA Coin’s Open Interest has dropped in the past few days.
The red Binance funding rate also indicates a possible change in the ongoing price trend. ADA’s MACD shows a downward dominance in the market. Also, the CMF is negative. With the expected BTC volatility in the coming week, investors could face larger losses.
Conclusion
While ADA Coin’s price has been on a downward trend, there are indicators that suggest a possible recovery. However, with the market’s current volatility, especially surrounding Bitcoin, investors should proceed with caution. The coming week will be crucial in determining ADA Coin’s price trajectory.
