Cardano (ADA) is struggling to regain momentum after a sharp drop, which saw the price remain below the key $1 level.
The altcoin’s inability to recover its recent losses reflects its gloomy outlook as it continues to hold firm in a tight range. Weak investor sentiment and lack of significant price movement exacerbate ADA’s difficulties.
Cardano investors lose interest
The DAA (Daily Active Address) index of the Cardano price is currently generating a sell signal, highlighting the decreasing upside potential. This index shows that the number of participants actively interacting with the blockchain is decreasing, further reducing buying pressure. This trend signals a bearish outcome for altcoins if market conditions remain unchanged.
Added to this are concerns about a lack of price growth. The investor base clearly declined as ADA’s trading volume stagnated. Without more active market participation, Cardano’s chances of a significant recovery become weaker, leaving the altcoin vulnerable to further devaluation.
Cardano’s macro trends also point to bearish challenges. Whale activity has dropped significantly, with the number of transactions surpassing $100,000 falling to a six-week low. The decline reflects hesitation among large investors, who often influence market moves.
The drop in the number of high-value transactions to 5,560 over the past 24 hours is consistent with ADA’s lack of growth in recent days. Large investors appear to be waiting for stronger signs of recovery before returning to the market, making the prospects for a short-term recovery for Cardano even more difficult.
ADA Price Forecast: Consolidation Breakout
Cardano price is currently hovering around $0.92, trading in a narrow range from $0.87 to $1. This sideways move over the past week suggests a lackluster recovery as the broader market remains stagnant. The lack of a decisive breakout further strengthens its position on a bearish trajectory.
If current bearish indicators continue, ADA is likely to continue to consolidate or fall below $0.87. A further decline could push the price towards $0.77, representing a significant loss for investors. This scenario would reinforce the bearish outlook unless market conditions improve.
On the contrary, if investors regain confidence and market indicators change, ADA could surpass 1 USD. Reaching this level would refute the bearish thesis, potentially triggering a rally towards higher levels. However, such a recovery will need strong buying pressure and support from the broader market.