One key indicator is the large holders’ netflow, which tracks the buying and selling activity of wallets holding 0.1% to 1% of ADA’s circulating supply. A drop in netflow signals increased selling. Recent data from IntoTheBlock reveals a 142% decline in large holders’ netflow over the past week, highlighting rising sell pressure.
The decline in the overall number of ADA holders is another worrying trend. The number has decreased to 4.40 million from 4.47 million in November. This suggests that some investors have profited from the previous price increases for ADA.
A bearish trend is also indicated by technical indicators. The price of ADA has fallen below the 20 and 50 Exponential Moving Averages (EMA) on the 4-hour chart. These levels indicate a risk of additional decrease and are commonly used to measure price movements.
ADA’s price may temporarily fall to $0.95 if it is unable to recover support above $1.05. ADA might return to $1.19 or higher, though, if bulls acquire strength and drive the price above these EMA levels.
The coming days will be crucial as Cardano battles to maintain its footing amid heightened market uncertainty.
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