Cardano (ADA) Price Drops 6%, Extends Last Week’s Decline
Cardano (ADA) price fell 6% and trades below $0.58 as of Monday. This drop adds to last week’s 10% fall. On-chain activity is weakening, and more traders are taking short positions. These signs point to growing bearish sentiment. Technical indicators suggest the price may fall further.
On-Chain Activity and Derivatives Show Bearish Signs
Santiment’s Daily Active Addresses (DAA) index tracks blockchain use over time. A rising DAA means more network activity, while a falling DAA shows lower demand.
Cardano’s DAA dropped from 32,115 on October 11 to 24,280 on Monday. The number has been falling since August. This decline suggests lower demand for Cardano’s blockchain, which may push the price down more.
On the derivatives side, CoinGlass reports the ADA long-to-short ratio is 0.75 on Monday. This is the lowest level in a month. A ratio below 1 means more traders expect the price to drop.
Price Outlook: Momentum Indicators Signal Bearish Trend
Cardano’s price hit resistance at $0.70 last week and then dropped over 10%. On Monday, ADA trades around $0.57. If the price keeps falling, it could reach the next support near $0.49.
- The Relative Strength Index (RSI) is 32, below neutral 50, showing strong bearish momentum.
- The MACD shows converging lines and shrinking green bars, indicating weakening bullish momentum.
If the price recovers, it could rise back toward resistance at $0.70.
