- The ADA has fallen by more than 4% in the past 24 hours, despite a small recovery
- Despite this decline, the trend of active addresses remained stable
Cardano (ADA) has fallen on the charts lately, disrupting any recovery plans the company had in place. And this recession is expected to have significant consequences. Especially because the number of active addresses has not seen any substantial movement during this period.
Cardano crashes and burns
An analysis of the price movement of Cardano (ADA) on a daily time chart revealed a significant recent decline. Specifically, ADA recorded a sharp decline of 7.38% on August 2, followed by a brief period of recovery on the charts.
Needless to say, the aforementioned price drop affected the behavior of ADA’s short-term moving average (yellow line), with the same establishing itself as a stronger resistance level around $0.4.
The role of this moving average as resistance suggested that ADA will need to generate significant buying pressure to break this level and potentially trigger a trend reversal.
Source: TradingView
Despite the altcoin’s slight recovery in the past few hours, it is worth pointing out that its Relative Strength Index (RSI) was close to 40. This is an indication that bearish sentiment is dominating the ADA market.
Cardano’s active addresses remain stable
An analysis of Cardano’s daily active addresses on Santiment indicated a generally stagnant trend in user activity. In fact, the numbers fluctuated between 26,000 and 27,000.
This level of activity is a sign of a stable but unspectacular level of engagement among users within the network.
Source: Santiment
However, on August 2, there was a notable, albeit brief, increase in activity, with the number of active addresses rising to approximately 28,125. This increase, while small, could indicate a temporary increase in the number of transactions or interactions on the network.
Interestingly, at the time of writing, there was also a significant drop in the number of active addresses, with the same number dropping to around 10,000.
A slight increase in volume
Finally, an interesting pattern seemed to emerge when analyzing Cardano’s book.
In recent days, ADA trading volume has increased significantly. While volume was around $280 million by the beginning of the month, while volume rose to over $400 million when the price dropped on August 2.
This volume trend and a stable number of active addresses indicate that ADA holders are in a holding pattern. They are not panic selling in large numbers, nor are they new investors buying aggressively at lower prices.
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Simply put, investors may be waiting for more definitive signs of recovery or further decline in the altcoin.