Cardano Price Going To $0.25 As New Addresses Drop 48% In 2 Months.
The general slump in
cryptocurrency prices has traders on edge. Top altcoins like ADA remain significantly suppressed with little chance of an immediate recovery. Cardano price depicts a weaker technical structure compared to the first quarter when the token hit its $0.81 yearly peak.
Low Network Activity Predicts Further Cardano Price Decline.
A noticeable decrease in the number of new addresses joining the network over the last two months could further squeeze ADA's lifeline. Blockchain data from IntoTheBlock shows a 48% drop in unique addresses from 14,700 to 7,650 from the beginning of June to early August.
The prevailing technical structure in the daily time frame shows weakness. Bulls are looking forward to a heated battle, especially since most indicators favor an extended correction under $0.35 support.
Multiple sell signals call on traders to short ADA, starting with the Moving Average Convergence Divergence (MACD) and a recently confirmed death cross pattern.
A death cross sends a bearish signal when a short-term moving average flips below a long-term one. In the ADA price case, the 20-day Exponential Moving Average (EMA) crossed below the 50-day EMA, increasing the chances of a medium-term bearish trend playing out.
Cardano price also holds under all three moving averages, including the 200-day EMA, which marks the resistance at $0.4572. Bulls must set camp at $0.35 support because if it is broken and further destabilizes the technical structure, the dive to $0.3 would be drastic and increase the probability of ADA crashing to $0.25.
Bulls can stop the decline in Cardano price at $0.35. Besides, a daily bullish candle continues to form, which could clear the path for a potential falling wedge pattern breakout.
The falling wedge in the daily time
frame formed after ADA pulled back
from the yearly peak of $0.81, touching
two lower highs and three lower lows.
