Will Cardano (ADA) reclaim its position?
Cardano (ADA) has dropped out of the top ten cryptocurrencies by market capitalization, replacing Tron (TRX), which gained 14% last week.
In contrast, ADA has only gained 2% over the same period and is currently trading at $0.34. Cardano's rate slide reflects a broader market decline this past week. At 2.1 trillion dollars, the world cryptocurrency market capitalization has decreased by 2% in the last seven days.
Cardano lost the most wanted place
On-chain data shows significant weakness in the DAA market over the past 24 hours, reflecting a sharp decline in the asset's price-daily active address (DAA) differential, which is now at a 90-day low.
Price-DAA variance compares the asset's price changes to the daily shift in active addresses to gauge if network activity is supporting the price. Currently, the ADA price-DAA difference is at -41.41%.
Over the past 24 hours, the price of ADA has increased by 2%, while the price-DAA gap has narrowed. This indicates that only a few unique addresses are involved in transactions relative to the price. Traders often see this as a warning of speculative activity or manipulation by certain investors.
Despite the modest jump in price, the daily trading volume on the chain has reached a record level of profit and loss. At press time, the ratio is 2.20, marking the highest level since January 2023, according to Santiment.
Read more: How to buy Cardano (ADA) and everything you need to know
This shows that for every ADA trade that ended in a loss, 2.20 trades returned a profit.
ADA Price Forecast: Set to lift coin.
As assessed on a daily chart, the ADA's movements show the price's attempt to cross above the 20-day moving average (EMA). This moving average tracks the average price of the asset over the last 20 trading days.
When the asset's gearing tries to rally above this key level, it suggests that it may be entering a short-term bearish phase. A break above the 20-day EMA is a great indicator, indicating potential momentum for further price growth. If ADA continues this trend, it could see a price rally towards $0.40.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
However, if it reverses direction and declines, the coin's price could drop to $0.27, the lowest since August 5 during the general market crash.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
