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Elevenews

08/09/2023

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Down but not out: Cardano price might be primed for a comeback - ELEVENEWS

Cardano price is set to witness a potential trend reversal provided it flips $0.3043 into a support floor. The altcoin has not lost its investors’ interest as both retail and whale holders have been...

Down but not out: Cardano price might be primed for a comeback - ELEVENEWS
  • Cardano price is set to witness a potential trend reversal provided it flips $0.3043 into a support floor.
  • The altcoin has not lost its investors’ interest as both retail and whale holders have been constantly adding to their wallets.
  • Their presence on the network, however, is concerning as active addresses hit a 12-month low this week.

Cardano price is seemingly bouncing back even though the broader market is still far from noting an alt season. The ADA holders have been both a boon and a bane in this recovery, preventing any significant decline but also keeping the altcoin from witnessing an immediate recovery.

Cardano price nears key level

Cardano price has been on a decline for the past three weeks after noting the highest single-day rise in its history – 23% in mid-July. Falling by 18% since then, the cryptocurrency is now looking to recover its losses and might be able to, provided it finds sufficient support from its investors.

ADA holders have consistently added more tokens to their wallets for the past two months. The accumulation did not slow down despite the recent drawdown as both retail and whale, aka large wallet holders, have observed an increase in their supply.

This is visible in the different cohorts holding between 1,000 ADA to 10 million ADA, encompassing nearly 19 billion ADA worth $5.7 billion at the current market value of the asset.

Cardano supply distribution

Cardano supply distribution

But their presence on the network has not been as spectacular, with the active addresses ranging in the lows of 70k on average. This has been the weak link in Cardano price recovery, and over the past week, the number of addresses conducting transactions on the chain dropped to as low as 30k, marking a yearly low.

Cardano active addresses

Cardano active addresses

However, ADA has the chance to bounce back, as indicated by the price indicators. Both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are signaling potential bullish signals at the moment. If the RSI flips the neutral line at 50.0, ADA might find increased demand, likely pushing the price higher.

Similarly, the MACD line (blue) crossing over the signal line (red) could suggest a change in trend as a bullish crossover would be marked. This is also evident in the receding bearishness on the histogram.

ADA/USD 1-day chart

ADA/USD 1-day chart

Nevertheless, to sustain any recovery, Cardano price would need to flip the 50-day Exponential Moving Average (EMA) into a support floor. In doing so, the price level marked at $0.3043 would also flip into support which has been a key level in the past for ADA.

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Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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