Cardano (ADA) is at risk of falling below the critical $1 level, which has raised concerns among investors.$ADA
The recent decline in the number of ADA holders indicates the beginning of a wave of profit taking, which usually heralds price declines.
“The continued selling pressure and the decline in the number of holders create a worrying picture for Cardano’s immediate future,” he commented.
Cardano (ADA) is at risk of falling below the $1 level amid increasing profit-taking trends.
The Cardano ecosystem is going through a period where the price is struggling to stabilize, and this is bringing bearish signals. According to on-chain data, the net flow trend of large investors indicates a shift from accumulation to sales. In particular, the net flow percentage in large addresses has dropped significantly in recent days, indicating that sales are outpacing purchases.
This net flow has fallen by 142% in the last week, reflecting growing concerns among large investors. This suggests that price declines are more likely, and this trend is only getting stronger as smaller investors continue to realize their previous gains.
Another worrying aspect is the significant decrease in the total number of ADA holders; the number of holders has decreased from approximately 4.47 million at the beginning of November to approximately 4.40 million in the recent period. This decrease indicates a loss of confidence among users; many small investors are observed to have closed their positions after the recent price fluctuations.
This decrease in the number of holders could prevent a possible price increase, as it could be associated with a decrease in demand. If this trend continues, the lack of new funds entering the market could put more pressure on the ADA price. In terms of technical analysis, ADA’s breakout above both the 20 and 50 Exponential Moving Averages (EMAs) suggests that potential support levels are being tested.
If ADA continues its bear market momentum, the price could drop to $1.05 in the short term. According to this analysis, there is a high probability that ADA will drop to $0.95. On the other hand, if bullish momentum kicks in and the price breaks above the moving averages, ADA is likely to rally and set an upside target around $1.19.