Title: Cardano Faces Risk of 30% Drop as On-Chain Metrics Signal Weak Demand
Cardano has experienced a significant 26% surge following recent interest rate cuts by the Federal Reserve, bringing optimism to the crypto market. However, concerns arise regarding the sustainability of this surge as Cardano’s price failed to surpass a key resistance level, casting doubt on the strength of the uptrend.
On-chain data from Santiment indicates a decrease in demand for ADA, raising caution among investors. With declining network activity and buying pressure, the current rally’s sustainability is in question. Investors are keeping a close eye on ADA’s next move, recognizing its significance in determining future performance.
A concerning indicator shows that Cardano faces a potential 30% drop to its yearly low of $0.27. The negative DAA divergence suggests that much of the recent rally may be driven by broader market sentiment rather than specific demand for ADA. This lack of organic demand increases the likelihood of a significant correction.
The current price action of ADA is testing a crucial supply level at $0.41, with traders closely monitoring its ability to reclaim this level or face further downside pressure. Failure to break above key resistance levels could lead to a 30% drop, revisiting the yearly low.
In conclusion, market uncertainty and declining demand pose challenges for ADA’s price movement. The next few days will be pivotal in determining whether a bullish breakout or a deeper correction is imminent. Stay informed and engaged with Cardano’s developments as the market continues to evolve.
Featured image from Dall-E, chart from TradingView.
