Layer-1 (L1) coin Cardano has struggled to break past the $0.7242 resistance level over the past two trading sessions. The altcoin’s performance remains muted following last weekend’s broader market downturn.
With on-chain data pointing to a dip in network activity on the Cardano network and waning bullish sentiment around its native coin, ADA could face further losses in the near term.
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ADA’s Trader Activity Drops Amid Waning Bullish Bias
According to Santiment’s data, the count of unique active addresses involved in ADA transactions daily has fallen steadily since October 11, the day after the market witnessed a record $20 billion liquidation event.
Yesterday, 22,144 unique addresses completed at least one transaction involving the ADA token, marking a 31% drop since Saturday.
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A decline in unique active addresses like this signals reduced market participation and waning trader interest.
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When fewer participants are engaging with an asset, it indicates weakening demand, leaving the price more vulnerable to further losses.
Per the data provider, this drop in ADA active addresses results from the shift in market sentiment, as the bullish bias toward the altcoin continues to fade. This is reflected by the coin’s weighted sentiment, which remains below the zero line and continues to trend lower. At press time, it sits at -1.52.
This metric analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency. It considers the volume of mentions and the ratio of positive to negative comments.
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When weighted sentiment is positive, it indicates more positive comments and discussions about the cryptocurrency than negative ones, suggesting a favorable public perception.
On the other hand, when it returns negative values like ADA, it signals that negative discussions outweigh positive ones, reflecting waning skepticism among market participants.
This negative bias can discourage new buyers from entering the market and may prompt existing ADA holders to reduce their positions, putting further downward pressure on the coin’s price.
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ADA Bears Take Control: MACD Signals Potential Slide to $0.6179
On the daily chart, readings from ADA’s Moving Average Convergence Divergence (MACD) indicator confirm this bearish outlook.
At press time, the coin’s MACD line (blue) rests below its signal line (orange), a setup typically described as indicating high selling activity.
If this continues, ADA’s price could fall to $0.6179. A breach of this support floor could lead to a steeper decline to $0.4665.
On the other hand, if demand returns to the market, ADA could breach the resistance at $0.7242 and climb to $0.8305.