Cardano (ADA) Sees Significant Activity and Price Decline
During the intraday trading session on July 4, Cardano’s (ADA) Age Consumed metric surged to a 35-day high, indicating that previously dormant tokens are now being actively traded. This activity suggests that long-term holders are starting to move their assets.
Following this spike, the price of ADA experienced a decline, indicating that a local top had been reached. On July 4, a notable 1.32 billion ADA tokens, valued at approximately $433 million at current market prices, were transferred, as reflected by the increase in the Age Consumed metric.
Understanding Cardano’s (ADA) Age Consumed Metric and Its Market Implications
An asset’s Age Consumed metric tracks the movement of its dormant coins, providing insights into the behavioral shifts of long-term holders. These holders typically refrain from moving their coins, so when they do, it often signals an impending market trend shift.
The Age Consumed metric can indicate a price bottom when a spike in its value is followed by a rally in the asset’s price. Conversely, it can signal a price top when a spike in the metric precedes a decline in the asset’s price. A price top is defined as the highest price an asset reaches before entering a sustained decline.
At press time, ADA is trading at $0.32, reflecting a 17% drop in the past 24 hours. For context, the altcoin was trading at $0.39 when its Age Consumed metric surged, marking its local top.
ADA’s daily trading volume has increased by 23% during the same period, creating a bearish divergence between the coin’s price and trading volume. This divergence suggests the potential for a continued price decline.
Read More: How To Buy Cardano (ADA) and Everything You Need To Know
ADA Trading Volume and Price Prediction: Downtrend Persists
In the past 24 hours, ADA’s daily trading volume has reached $707 million.
ADA Price Prediction: Current Downtrend Remains Strong
Since the beginning of July, ADA has been on a persistent downtrend. Currently, the altcoin is trading at levels last seen in November 2023.
The strength of this downtrend is confirmed by ADA’s Aroon Down Line, which is at 100%. This indicator measures the strength of a trend and helps identify potential reversal points. A Down Line close to 100% indicates a strong downtrend and that the most recent low was reached relatively recently.
If the bearish sentiment towards ADA continues to build, its value may drop 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.