Cardano (ADA) has struggled to regain bullish momentum after a sharp drop, keeping its price below the critical $1 level.
The altcoin’s inability to recover recent losses reflects a bleak outlook as it continues to consolidate in a tight range. Weak investor sentiment and a lack of significant price movement are compounding ADA’s struggles.
Cardano investors lose interest
Cardano DAA (Daily Active Addresses) price is currently flashing a sell signal, highlighting the waning upside potential. The indicator shows that the number of active participants interacting with the blockchain is decreasing, further reducing buying pressure. This trend signals a bearish outcome for the altcoin if market conditions do not change.
Adding to the concerns is the lack of price growth. A declining investor base is visible as ADA trading volume stagnates. Without increased market share, the possibility of Cardano achieving a significant recovery diminishes, leaving the altcoin vulnerable to further price depreciation.
Cardano DAA Price Divergence. Source: Santiment
Cardano’s macro momentum also points to bearish challenges. Whale activity has seen a noticeable decline, with the number of transactions exceeding $100,000 falling to a six-week low. This decline reflects hesitation among large investors who often influence market movements.
The drop in high-value transactions to 5,560 transactions over the past 24 hours is in line with ADA’s lack of growth in recent days. Large investors appear to be waiting for stronger signs of recovery before re-entering the market, further weakening the prospects of a near-term rally for Cardano.
Number of Large Transactions on Cardano. Source: IntoTheBlock
ADA Price Prediction: Escaping Consolidation
Cardano price is currently consolidating around $0.92, trading within a tight range of $0.87 to $1.00. This sideways movement over the past week highlights the waning recovery chances while the broader market remains stagnant. The lack of a decisive breakout further solidifies its bearish bias.
If the current bearish indicators persist, ADA is likely to continue consolidating or drop below $0.87. A further decline could push the price towards $0.77, representing a significant loss for investors. Such a scenario would solidify the bearish outlook unless market conditions improve.
Cardano Price Analysis. Source: TradingView
On the other hand, if investors regain confidence and market cues change, ADA could break above the $1.00 mark. Reaching this level would invalidate the bearish thesis, potentially triggering a rally to higher price targets. However, such a recovery would require significant buying pressure and broader market support.
The article Cardano Stagnates Below $1; Check It Out was first seen on BeInCrypto Brasil.
