Although a recent increase in active addresses suggests fresh interest, technical indicators and dwindling trading volume point to an uncertain future.
Cardano At A Crossroads
The paints a complicated picture. Although the recent increase gives some hope, the technical signs and dwindling volume point to a likely continuation of the downturn.
Cardano’s Uphill Battle: Price Struggles For Traction
May began her ADA holders with a glimmer of hope. Three days of rallies later, the price rose from $0.45 to $0.46. Still, a string of losses quickly wiped out these increases, bringing the price back to the $0.45 range—that is, where it had been. This series of pauses and starts highlights how ADA lacks regular thrust.
Total crypto market cap currently at $2.294 trillion. Chart:
A minor increase as of today has taken ADA back to the $0.45 zone, providing a brief relief. But hidden under the surface is the ongoing bear trend, verified by the Relative Strength Index (RSI) sitting slightly around 40. This statistic points to weak purchasing power and possible more price swings.
Source: CoinMarketCap
Source: CoinMarketCapWorse still, a technical indication called a “death cross” looms on the horizon. Usually indicating a bearish price trend, this sinister pattern results from the short-term moving average crossing above the long-term average.
Cardano’s Quiet Streets: Trading Volume Dampens Enthusiasm
The Cardano network’s trading activity hasn’t exactly been explosive. Originally rising to around $400 million at the start of May, the volume has dropped to about $275 million now. This notable reduction points to a loss of investor interest, which could slow down price rises.
Source: Santiment
Source: SantimentUsually, a good rise in volume corresponds with steady price increases, suggesting active buying and selling. For Cardano, the subdued volume creates a worrisome picture of a market devoid of conviction.
Active Addresses Show Tentative Rise
Cardano’s active addresses point to one lone shining light. This statistic counts the distinct addresses engaged in network transactions. Seven-day active addresses have lately increased; the count ranges from around 155,000 to over 160,000.
Featured image from InspiredPencil, chart from TradingView
