Cardano (ADA) is struggling to regain bullish momentum after a significant decline, with the price remaining below the critical $1 mark.
The altcoin has been unable to recover recent losses, reflecting its bleak outlook as it continues to consolidate in a narrow range. Investor sentiment is low, and the lack of significant price volatility exacerbates ADA's predicament.
Cardano investors are losing interest.
Cardano's price DAA (Daily Active Addresses) divergence is currently signaling a sell, highlighting that bullish potential is diminishing. This indicator shows that the number of actively participating users interacting with the blockchain is decreasing, further reducing buying pressure. If market conditions do not change, this trend suggests that the altcoin will face bearish outcomes.
The lack of price growth has also intensified concerns. With ADA trading volume stagnating, the investor base is shrinking. Without increased market participation, the likelihood of a significant rebound for Cardano decreases, leading to further depreciation of the altcoin's price.
Cardano Price DAA Divergence.
Cardano's macro momentum also indicates bearish challenges. Whale activity has noticeably decreased, with the number of transactions over $100,000 dropping to a six-week low. This decline reflects the indecision of large investors, who frequently influence market trends.
The high-value transaction volume in the past 24 hours has dropped to 5,560, which aligns with ADA's trend of lack of growth in recent days. Large investors seem to be waiting for stronger recovery signals before re-entering the market, further weakening Cardano's prospects for recent gains.
Cardano large transaction volume.
ADA Price Prediction: Breaking Out of Consolidation
Cardano's price is currently consolidating around $0.92, with a trading range between $0.87 and $1.00. The sideways movement over the past week highlights that recovery opportunities are diminishing due to the stagnation of the broader market. The lack of decisive breakthroughs further solidifies its bearish trend.
If the current bearish indicators persist, ADA may continue to consolidate or fall below $0.87. Further declines could push the price down to $0.77, which would mean significant losses for investors. Unless market conditions improve, this scenario will solidify the bearish outlook.
Cardano Price Analysis.
On the other hand, if investor confidence is restored and market cues change, ADA could break the $1 barrier. Reaching this level would invalidate the bearish argument and could trigger a rebound to higher price targets. However, such a recovery requires substantial buying pressure and broader market support.
