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Cardano price may rise to $0.47 or fall to $0.27

Cardano price may rise to $0.47 or fall to $0.27

GrafaGrafa2024/09/10 22:35
By:Isaac Francis

Cardano (CRYPTO:ADA) has seen a modest 3% rise in its price, climbing to $0.34 over the past week. 

However, analysts remain cautious, as several bearish indicators suggest that this upward momentum might be fragile. 

A key factor contributing to this outlook is the negative price Daily Active Address (DAA) divergence observed since September 3. 

This divergence indicates that despite the recent price increase, there has not been a corresponding rise in user activity, casting doubt on the sustainability of these gains. 

Whale activity, another significant market indicator, also points to potential weaknesses. 

Large investors holding between 10,000,000 and 100,000,000 ADA have been reducing their positions since September 5. 

This reduction in whale holdings often signals a bearish trend, as it could prompt smaller retail investors to sell their holdings to secure profits. 

If this selling pressure continues, Cardano may struggle to maintain its recent gains. 

Technical analysis further supports a cautious outlook for ADA. 

The altcoin's price has remained below a descending trend line since July, suggesting a persistent bearish trend. 

The Chaikin Money Flow (CMF) indicator, which measures capital flow in and out of the market, is currently at -0.01, indicating that money is leaving the market. 

This, coupled with a rising price, forms a bearish divergence, implying that the rally may not have strong buying support and could soon face a downturn. 

If buying pressure does not increase, Cardano’s price might fall to $0.27, as suggested by the Fibonacci retracement indicator. 

Conversely, if sentiment shifts positively, ADA could potentially reach $0.47. 

Investors should closely monitor these key indicators to gauge the next possible moves for Cardano. 

At the time of writing, the Cardano (ADA) price was $0.342.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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