Cardano (ADA) Faces Decline After Reaching Local Top

During the intraday trading session on July 4, Cardano’s (ADA) Age Consumed metric rose to a 35-day high, suggesting that previously dormant tokens have begun to change hands. 

This surge has since been followed by a decline in the altcoin’s price, signaling that a local top has been reached

Cardano Long-Term Holders Are on the Move

On July 4, 1.32 billion ADA coins worth approximately $433 million at current market prices were moved, as indicated by the spike in its Age Consumed metric.

Cardano Age Consumed. Source: Santiment
Cardano Age Consumed. Source: Santiment

An asset’s Age Consumed metric tracks the movement of its dormant coins. The metric offers insight into the behavioral shifts of an asset’s long-term holders. This cohort of coin holders rarely moves their dormant coins around. Therefore, it is noteworthy when they do because it often precedes a shift in market trends. 

The Age Consumed Metric can be a marker of a price bottom. This occurs when a spike in the metric’s value is followed by an asset’s price rally. 

Read More: How To Buy Cardano (ADA) and Everything You Need To Know

Conversely, it is also an indicator of a price top. This occurs when the metric spikes and the asset’s price falls.  A price top refers to an asset’s highest price before a sustained decline.

At press time, ADA trades at $0.32. Its value has declined by 17% in the past 24 hours. For context, the altcoin traded at $0.39 when its Age Consumed surged. This price level represents its local top.

ADA’s daily trading volume has surged by 23% during the same period. This creates a bearish divergence between the coin’s price and trading volume, hinting at the possibility of a continued price decline.

Cardano Trading Volume Source: Santiment
Cardano Trading Volume Source: Santiment

In the past 24 hours, ADA’s daily trading volume has totaled $707 million. 

ADA Price Prediction: The Current Downtrend is Strong

ADA has been on a downtrend since the beginning of July. At its current price, the altcoin trades at a low last seen in November 2023.

ADA’s Aroon Down Line is 100%, confirming the strength of the current downtrend. This indicator measures an asset’s trend strength and identifies potential trend reversal points. When its Down Line is close to 100%, the downtrend is strong, and the most recent low was reached relatively recently.

If the bearish bias towards the altcoin continues to gain momentum, ADA’s value may dip to $0.31.

Read More: Cardano (ADA) Price Prediction 2024/2025/2030

Cardano Analysis. Source: TradingView

However, if buying pressure spikes, it may push the coin’s price to $0.34.

The post Cardano (ADA) Faces Decline After Reaching Local Top appeared first on BeInCrypto.

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