Cardano (ADA) has gained 13.73% in the past week and is currently trading at $0.4018. This rally was mainly due to the interest rate cuts by the Federal Reserve. A pullback may occur in the short term.
A sell signal has just been issued on ADAâs daily chart, which usually indicates that the market is overextended and profit-taking and price declines may occur. In addition, the difference between ADAâs price and the number of active addresses in the past seven days is -45.63, indicating that the price increase has not been accompanied by an increase in user activity, which suggests weakening demand.
At the same time, Cardanoâs holding concentration is also high, with 70.70% of ADA tokens held by retail investors, who are more susceptible to sentiment swings, thereby exacerbating price fluctuations.
ADA has performed strongly recently, but due to the lack of fundamental support, it is expected to experience a pullback in the short term, possibly falling back to the $0.345 support level.
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