Can Cardano (ADA) maintain its 15% increase? I'm afraid it's uncertain, and here's why
#加密市场反弹 On December 11, Cardano (ADA) briefly dropped to $1.01, but then surged 15% in the following 24 hours. In an instant, holders of altcoins saw hope again, thinking ADA could continue to rise.
However, the latest on-chain data isn't very optimistic.
Cardano investors are feeling uncertain
Over the past month, Cardano has been one of the top-performing cryptocurrencies, peaking at $1.25, and has risen again in the past couple of days.
However, there are two points to note: this upward trend for ADA may not last long. The first is that the holding period for tokens has decreased. Simply put, people are unable to hold onto their coins and are constantly thinking about selling. This is the current situation with ADA, where the holding period has been shrinking. If this continues, it may be difficult for ADA to stabilize at $1.16.
The holding period for Cardano tokens has decreased.
The second point is that the price is not aligning with the daily active addresses (DAA). This metric measures the activity on the blockchain and whether prices are rising. Generally speaking, when prices rise, there are more investors and more active addresses, which is positive for cryptocurrencies.
However, Santiment data shows that while Cardano's price has risen, active addresses have decreased, which is not good and indicates that this rebound may not be sustainable. The risk of ADA correcting is significant.
Cardano's price and DAA are misaligned.
Indicators on the ADA/USD daily chart also show that this upward trend is not very stable. Especially the MACD indicator, which analyzes the difference between the 12-day and 26-day exponential moving averages (EMA) to determine momentum. Currently, the MACD indicator is negative, indicating that ADA's momentum is weak.
Looking at it now, whether Cardano can continue this upward trend (currently at $1.16) is quite uncertain.
Cardano Daily Analysis.
From this perspective, the ADA price could drop back to $0.98. Of course, if the momentum improves, it could rise to $1.33, or even approach $2. But it all depends on market conditions.
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