Why Cardano Coin Price May Struggle To Reach $1
Cardano (ADA) rose steadily over the past two weeks, reaching a two-year high of $0.81 on November 16 before experiencing a minor correction. It is currently trading at $0.75, down 5% from its peak.
Analysis of its on-chain and technical indicators suggests that this downturn is likely to persist, potentially hindering its ability to return to $1 levels – a milestone last reached in 2022.
Cardano holders sell for profit
Evaluation of BeInCrypto Cardano transaction network traffic There has been a surge in inflows over the past 24 hours, indicating profit-taking activity. As of 9:16 UTC on Monday, data from Coinglass shows that the altcoin has recorded net inflows totaling $7.21 million.
Increased exchange inflows indicate that token holders are moving their assets to exchanges for sale, leading to increased selling pressure and falling prices.
Furthermore, the decline in ADA trading volume over the past 24 hours confirms this bearish outlook. Although Cardano’s price surged by 7%, its trading volume fell by 57% during this period.
When the price of an asset increases and trading volume decreases, it is a sign that fewer buyers are participating in the market and the upward momentum may not be as strong as it appears. This indicates a loss of interest or lack of conviction among market participants as many would rather sell for a profit.
It is worth noting that on Monday, Transactions involving ADA All have achieved significant profits. According to Santiment data, the current profit-loss ratio of daily on-chain transaction volume is 3.35, the highest single-day value since June 2020.
This means that for every ADA trade that ended in a loss, 3.35 trades resulted in a profit. This high P/L ratio represents a potential selling opportunity for Cardano traders aiming to realize gains. It could add downward pressure on the token’s price.
ADA Price Prediction: Further Decline Is Coming
As of press time, Cardano is trading at $0.75below a two-year high of $0.81. If buying pressure continues to subside, the coin’s price may retreat further to seek support at $0.69. If the bulls fail to hold this level, the price of Cardanocoin may fall further, possibly to $0.61.
Conversely, shifts in market sentiment and new demands for ADA It could see its price revisit the $0.81 highs and rebound above there.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
