According to Santiment, the ratio of 1-day online trading volume to profit and loss at the time of publication was 0.827. If this ratio is greater than 1, it means that more participants are making a profit than a loss.
In this case, the #ADA trend would be bullish. However, the data above shows that compared to all transactions in the #chain that made a loss, only 0.827 transactions ended in a profit.
Historically, this ratio has correlated with prices. For example, after 2 months, the ratio reached 0.722. At that time, the ADA price was 0.57. A few weeks later, the price rose to 0.73 on the chart.
A similar scenario occurred on 4/13/04. Then, due to the decrease in the ratio, ADA recovered from 0.43 to 0.52. Considering the past performance, #Cardano could fall even further.
In this case, the cryptocurrency's value could fall to 0.42. But ADA is also likely to rise by 20%, which means it will increase to 0.50 within a few days.
In addition, price divergence and DAA are indicators that can predict ADA valuation. DAA is an acronym for daily active address, used to measure the overall level of network activity.
When combined with price, this metric can be used to identify potential exit and entry points. At the time of publication, the DAA price was -38.88%. From a trading perspective, if the indicator is less than 0.50, you will see a buy signal.
On the other hand, if the divergence is above 0.90, you will see a sell signal. The ratio was 0.388, which seems to indicate that it's time to start averaging the dollar value of the Cardano #token before the price jumps up.
However, it is important to note that this figure alone does not determine where Cardano might move.
Evaluating this metric using volume and supply chain data has shown that the metric has increased on the chart. This indicates an increase in the number of purchases and sales. But if we look at the price trend, we can assume it was more sales than savings.
As long as this continues, ADA could face another decline as mentioned above.
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