Cardano Price Drops Below Key Trendline
Cardano (ADA) price fell below its rising trendline on Monday. This break signals a possible correction ahead. On Tuesday, ADA traded under $0.82, extending its losses. The price drop suggests more downside risk in the near term.
Dormant Wallets Become Active, Increasing Selling Pressure
Data from Santiment shows that dormant Cardano wallets are becoming active. This means tokens held for a long time are moving. Such activity often leads to more selling. Historically, spikes in dormant wallet activity have preceded price drops for ADA.
CryptoQuant data also points to growing selling pressure. The Taker Cumulative Volume Delta (CVD) for Cardano turned negative in mid-August. This indicator measures the difference between buy and sell volumes over three months. A negative and falling CVD suggests sellers dominate the market.
Technical Outlook: ADA Targets $0.76 Support Level
Cardano’s price broke below the ascending trendline connecting lows since early July. It dropped 6.1% and closed under the $0.84 support level on Monday. On Tuesday, ADA traded near $0.81, continuing its correction.
If the downtrend continues, ADA could test the $0.76 support. This level marks the 50% retracement from the June low of $0.51 to the August high of $1.02.
Technical indicators support the bearish view. The daily Relative Strength Index (RSI) is at 40, below the neutral 50 level. The Moving Average Convergence Divergence (MACD) showed a bearish crossover on Monday. Both signals point to downward momentum.
However, if ADA recovers, it may rise toward the $0.84 resistance level.
