Why long-term Cardano holders are moving ADA
Previously dormant Cardano coins (ADA) came on the move on Friday, leading to an increase in the number of active addresses for the day and increased trading activity
The ADA exchange rate was almost unchanged for the day despite the high trading activity. Let's find out what it means and whether Cardano fans should wait for a bullish trend.
ADA tokens are on the move
According to Santiment, on Friday, September 6, the age consumed metric for ADA hit a seven-day high of 6.33 billion. This metric tracks the movement of long-term held coins. It rises when long-term holders start moving coins, signaling possible changes in the market.
The growth of age consumed for ADA is accompanied by an increase in the number of active addresses. According to Santiment, the number of addresses involved in ADA transactions reached 54,200. This is an intraday high since March 6.
An increase in the number of active addresses usually indicates a positive sentiment, but ADA has responded with a decline. This may suggest that a top has already been formed and the price will continue to decline
Cardano price forecast: further - lower
On the daily chart of Cardano there are signs of further decline. For example, the points of the Parabolic Stop and Reverse (SAR) indicator, which show the possible trend direction and reversal moments, are above the price. This indicates the dominance of bearish sentiment.
In addition, the values of the coin's Moving Average Convergence and Divergence (MACD) indicator indicate the strengthening of the downward dynamics: the MACD line (blue) is located below the signal (orange) and zero lines.
Traders often view this as a sell signal, which puts pressure on the asset price. If the downtrend continues, the price of ADA may fall to the August 5 low of $0.27.
If the demand for ADA rises, the bearish outlook will fail to materialize. Buying pressure will lift ADA above the resistance level of $0.39 and help it reach the next key mark of $0.48.
