Cardano: Everything you need to know about ADA's recent tussle with bears - BitcoinEthereumNews.com
Cardano token continues to fail in its combat against a downswing.Long-term ADA holders are beginning to lose interest as the broader market becomes hostile.Cardano [ADA] found itself in familiar territory as...
- Cardano token continues to fail in its combat against a downswing.
- Long-term ADA holders are beginning to lose interest as the broader market becomes hostile.
Cardano [ADA] found itself in familiar territory as strange occurrences filled the crypto market in the last six to twelve hours. Barely able to produce gains for investors for quite some time, ADA joined the all-inclusive market crash as it shed 4.18% in the last 24 hours.
Read Cardano’s [ADA] Price Prediction 2023-2024
However, languishing in the red region is not obscure to ADA despite being ranked higher in terms of market capitalization. Details from CoinMarketCap showed that it has been one of the worst-performing assets out of the top ten. As a result, it left investors to battle with a 23.12% 30-day decline.
Exits from the hideout
Surely, the token dump cannot exempt itself from the recent Bitcoin [BTC] loss of the $20,000 stronghold. But a couple of things happening on the Cardano chain have also contributed to the month-long fall.
An irrefutable observation is the trend consistently displayed by its long-term holders. According to Santiment, the ADA 90-day dormant circulation has hit a series of highs since 1 February.
This metric shows the number of unique transactions on a given day made by investors who have refused to move their assets over a long period of time.
At press time, the dormant circulation was 2.84 million. But before the drop, the metric hit 295.8 million on 9 March. So, this implied that ADA investors were opting for mid-term sell-offs as a possible means to survive the current unfavorable conditions.
On the other hand, the realized market capitalization HODL wave reached a one-month high as shown by the chart above. At 1.776, it means that investors were not ready to pay higher prices for ADA, and the token was becoming less appealing.
ADA: Swaying the ride for the bears
Although Cardano’s trading volume surpassed the average in the last 24 hours, the technical outlook was not something to excite short to mid-term holders.
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First, the Awesome Oscillator (AO) which compares recent market movements to historic price movements was down to -0.047. Not only did the indicator remain below equilibrium, but it also formed a bearish twin peak. This means that sellers were strictly in control of the market.
In addition, the Chaikin Money Flow (CMF), a 21-day volume-weighted distribution average closed at -0.08. This was almost inevitable since the ADA price action decreased on increasing volume. Hence, ADA’s current status shows weakness in the market.
At the time of writing, ADA was down 89.93% from its All-Time High (ATH) and has decreased 63.75% in the last 365 days. But as things stand, there is a chance that the token price trades lower.
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