Cardano (ADA) Price Analysis: Decrease in Active Addresses Signals Bearish Trend
Decrease in Active Addresses and Whale Activity
Cardano (ADA) seems to be heading towards a continued downward trend as the number of active addresses trading the altcoin continues to decline. In addition, there has been a noticeable decrease in large-scale transactions involving ADA, signaling a reduction in whale activity.
According to data from IntotheBlock, the number of active addresses completing at least one ADA-related transaction per day has dropped by 36% in the past week. Similarly, the number of newly created altcoin trading addresses has decreased by 46% during the same period.
This decline in daily active addresses and new addresses for ADA indicates a decrease in user activity and interest. With fewer people participating in cryptocurrencies, there is lower demand and weaker market sentiment.
Price Prediction and Whale Activity
Whales have been increasing the circulation of ADA over the past month, leading to a 244% drop in net inflows from large holders during the same period. This surge in whale selling activity is usually a bearish signal, prompting individual investors to diversify their holdings.
If the weak demand for ADA persists, the next price target could be $0.27. The altcoin last reached this low on August 5 amidst a broad market downturn, previously hitting this level in October 2023.
If demand for ADA picks up, the price could potentially rise to $0.40. However, the current negative price-to-Daily Active Addresses (DAA) differential of -30.89% suggests a bearish market sentiment with less interest in ADA and reduced user activity on the network.
Conclusion
As the number of active addresses trading ADA continues to decline and whale activity remains subdued, the outlook for Cardano appears bearish. With a potential price target of $0.27 and the possibility of a rise to $0.40 if demand increases, investors will need to closely monitor market trends and whale behavior to make informed decisions.
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