Cardano (ADA) is struggling to regain upward momentum after a sharp decline, keeping the price below the critical $1 mark.
The inability of this altcoin to recover recent losses reflects a bleak outlook as it continues to maintain a consolidation trend within a narrow range. Weak investor sentiment, combined with a lack of significant price volatility, further complicates ADA's efforts to find growth momentum.
ADA investors are losing interest
Price divergence – DAA (Daily Active Addresses) of Cardano is currently flashing a sell signal, indicating diminishing bullish potential. This metric reflects the decreasing number of actively participating individuals interacting with the blockchain, further reducing buying pressure. Such a trend signals bearish outcomes for this altcoin if market conditions do not change.
The price not increasing is causing more concerns. It can be seen that the investor base is declining as ADA trading volume stagnates. If market participation does not increase, the likelihood of Cardano making a significant recovery will decrease, making this altcoin more susceptible to further depreciation.
Price divergence – DAA | Source: Santiment
The macro momentum of Cardano also points to bearish challenges. Whale activity has significantly decreased, with the number of transactions over $100,000 dropping to a six-week low. This declining situation reflects the hesitation of large investors, which often influences market trends.
High-value transactions have dropped to 5,560 in the past 24 hours, corresponding with ADA's price stagnation in recent days. Large investors seem to be waiting for stronger recovery signals before returning to the market, further diminishing ADA's short-term recovery prospects.
Large transaction volume | Source: IntoTheBlock
ADA price prediction: Breaking out of consolidation
ADA's price is currently consolidating around $0.91, trading within a narrow range from $0.87 to $1. The sideways volatility in the past week signals increasingly lower recovery opportunities as the market remains stagnant. The lack of a decisive breakout further reinforces the bearish momentum.
If the current bearish indicators continue, ADA is likely to continue consolidating or drop below $0.87. Further downward momentum could push the price down to $0.77, resulting in significant losses for investors. Such a scenario would reinforce the bearish outlook unless market conditions improve.
ADA price chart 4 hours | Source: TradingView
On the other hand, if investors regain confidence and market signals change, ADA could surpass the $1 mark. Achieving this level would invalidate the bearish thesis, potentially triggering a rally towards higher targets. However, such a recovery would require significant buying pressure and broader market support.
https://tapchibitcoin.io/whales-activity-with-ada-price-dipping-below-1-dollar.html