Cardano (ADA) loses its top ten ranking in the cryptocurrency market
Market Capitalization Shift
Last week, Cardano (ADA) dropped out of the top ten cryptocurrencies by market capitalization, with Tron (TRX) taking its place after gaining 14%. Despite ADA’s 2% increase, it is currently trading at $0.34, reflecting the overall downward trend in the market. The global cryptocurrency market capitalization has decreased by 2% to $2.1 trillion in the past seven days.
ADA’s Decline in Popularity
Recent on-chain data shows a significant weakening in the ADA market, causing the asset’s price to daily active address (DAA) difference to reach a 90-day low. The Price-DAA divergence currently stands at -41.41%, indicating a lack of network activity supporting the price. Traders are wary of the speculation or manipulation by a small group of investors, as the price difference with DAA narrows.
Despite a slight price increase, daily on-chain transaction volume and profit and loss ratio have peaked, reaching 2.20, the highest level since January 2023. This ratio signifies that for every ADA trade that ends in a loss, there are 2.20 trades that end in profit.
ADA Price Prediction
Looking at ADA’s movement on the 1-day chart, there is an attempt to break above the 20-day exponential moving average (EMA), which could indicate a short-term bullish phase. A break above this key level signals continued rising price momentum, with a potential rise to $0.40. However, if ADA reverses course, the token’s value may plummet to $0.27, last seen during the general market downturn on August 5.
Overall, while ADA faces challenges in market ranking and network activity, there is still potential for price movement in the near future.
