Cardano (ADA) has experienced movement among its long-term holders, with a rise in the coin’s daily active addresses. However, the lack of a significant price reaction suggests that this movement may not be indicative of bullish intentions. This increase in active addresses is accompanied by a surge in ADA’s age consumed, a metric that tracks the movement of long-held coins. This combination of factors could potentially signify a shift in market trends and could indicate a forthcoming sell-off.
Despite the rise in active addresses, ADA’s price has declined after the surge in age consumed, suggesting that a local top may have been reached and further decline could be expected. Technical analysis of Cardano’s one-day chart supports this bearish outlook, with the Parabolic SAR indicator indicating a potential continuation of the downward trend. Additionally, the MACD indicator shows ADA’s price gaining downward momentum, further reinforcing the possibility of a sell-off.
If the downward trend continues, ADA’s price may revisit its previous low of $0.27. However, a resurgence in demand could invalidate these bearish projections. If buying activity picks up and ADA’s price breaks above resistance at $0.39, it could trigger an upward movement towards $0.48.