Several on-chain indications point to a bearish future for Cardano (ADA), which means the price of the cryptocurrency might decline significantly.
Along with this, a crypto expert recently released a technical report warning that ADA might decline to as low as $0.4.
Based on information gathered by the on-chain analytics tool Messari, the amount of Cardano (ADA) traded has been going down since its recent high point. The amount of cryptocurrency traded every day peaked on March 14 at $1.53 billion. As of April 10, that number had dropped to $445.83 million.
Additional information from IntoTheBlock reveals three more on-chain measures that are unfavorable for ADA. First, the Net Network Growth has gone up by 0.17% in the last week.
This means that the total number of ADA addresses has gone down, which means that more users are leaving the ecosystem than are coming.
Cardano Whales Losing Interest
Secondly , the In the Money metric, which demonstrates how many ADA holders are currently making funds at the current price of the coin, has gone downward by 0.20% in the last seven days. Also, significant transactions on the Cardano network have gone down by 2.60 percent; these are transactions worth more than $100,000. This suggests that ADA whales are losing interest.
These negative on-chain indications back up what crypto analyst Alan Santana recently said, which is that ADA might decline between $0.4444 and $0.3450. From a technical point of view, Santana pointed out a constantly bearish outlook, saying that this trend would continue until ADA sets up a solid resistance level.
Coinglass data shows that bears are the most common animal in the ADA environment. In the past 24 hours, $632,720 has been taken out of ADA’s derivatives market, mostly from long bets ($502,170). At the same time, trade volume in ADA’s derivatives market has dropped by more than 11%, which shows that crypto investors are losing interest.
Furthermore, the number of options trades has dropped by 92% in the last 24 hours, making things appear more dire.As of this writing, the price of ADA is around $0.59, which is an improvement of over 1% in the last 24 hours according to data from CoinMarketCap.
