[Cardano’s on-chain indicators show a risk of a 30% price drop]
According to the data, ADA’s trading volume dropped to the second lowest in 2024, only $458 million. ADA price has dropped 4.81% in the past 24 hours to $0.36, and the number of active addresses has also dropped to approximately 22,000 from 52,000 in September. Data from CoinGecko shows that ADA prices are down 17% in the past 30 days, with prices remaining sideways since August.
Santiment’s on-chain data points to a drop in demand for ADA, leading investors to question whether its 26% rise can be sustained following the Federal Reserve’s interest rate cut. Weak demand and increasing selling pressure suggest ADA could drop 30%, hitting yearly lows of $0.27. Negative DAA divergence suggests that the recent rally has been primarily driven by market sentiment.
If ADA fails to break above the $0.41 resistance, the price could drop further to $0.27. Despite the bearish outlook, Santiment data shows that 89 large-scale transactions over $100,000 occurred at the end of August, showing that whales are accumulating ADA. The Messari report noted that ADA’s 39.7% price drop was related to an increase in supply, and that Cardano also saw a significant drop in dApp activity and total value locked (TVL).
The upcoming Chang hard fork and transition to the Voltaire era have yet to have a significant impact on ADA prices.
