Cardano (ADA) Facing Price Decline Despite Overall Bearish Cryptocurrency Market
Today, December 22, 2024, the overall cryptocurrency market is facing struggles, with Cardano (ADA) appearing poised for a notable price decline after exhibiting a bearish price action pattern. Amid this mild bearish market sentiment, traders and investors seem hesitant to engage with the altcoin, according to on-chain analytics firm Coinglass.
Technical Analysis and Future Outlook for Cardano (ADA)
Analysis of recent on-chain metrics alongside technical indicators paints a mixed picture for Cardano (ADA). While long-term holders display optimism, evidenced by significant outflows from exchanges, technical patterns signal potential short-term bearish trends.
According to CoinPedia’s technical analysis, ADA is currently bearish following a successful breakdown from a head-and-shoulders price action pattern, with a recent retest of that level. This retest of the breakdown level has partly confirmed ADA’s potential for a price decline.
Potential Price Drop and Optimistic On-Chain Metrics
Based on technical analysis, there is a significant likelihood of ADA dropping by 15% to reach the next support level at $0.80. Should this sentiment persist, ADA could easily reach the projected target.
Despite the bearish technical outlook, long-term holders remain optimistic about ADA, according to Coinglass. Data from ADA spot inflow/outflow indicates a substantial outflow of $200 million worth of ADA from exchanges in the past week, with no inflows recorded during this period. This movement of assets from long-term holders’ wallets away from exchanges suggests bullish sentiment, potential upside momentum, and a favorable buying opportunity.
Current Price Analysis
ADA is currently trading near $0.89, experiencing a price decline of over 5.5% in the past 24 hours. During this period, trading volume has decreased by 45%, reflecting reduced engagement from traders and investors amidst the ongoing price decline.
Source : coinpedia.org