Cardano (ADA) Price: Bears Push Token Below $0.60 While Whales Accumulate
TLDR
- Cardano price dropped over 6% on Monday, falling below $0.58 and extending last week’s 10% decline
- Daily active addresses declined from 32,115 on October 11 to 24,280 on Monday, showing reduced network activity
- The long-to-short ratio hit 0.75, the lowest in a month, with more traders betting on price drops
- Whale activity shows large holders moving millions of dollars worth of ADA off exchanges for long-term holding
- Over 100,000 new wallets were added in the past 60 days, pointing to growing network participation
Cardano price fell below $0.58 on Monday as bearish pressure continued to mount. The drop represented a 6% decline for the day and extended the previous week’s 10% slide.
Cardano (ADA) Price
On-chain data painted a bearish picture for the cryptocurrency. Daily active addresses on the Cardano network dropped to 24,280 on Monday. This marked a decline from 32,115 addresses recorded on October 11.
The falling address count has been a consistent trend since August. Lower network activity typically points to reduced demand for blockchain usage.
Source: Santiment
Derivatives data supported the bearish outlook. The long-to-short ratio for ADA stood at 0.75 on Monday, the lowest reading in a month. This figure below one means more traders are betting on price declines than increases.
Technical indicators showed weakness in ADA’s momentum. The Relative Strength Index read 32 on the daily chart, below the neutral 50 level. The Moving Average Convergence Divergence lines were converging with shrinking green bars.
ADA faced rejection at the $0.70 resistance level last week before starting its decline. The next support level sits at $0.49 if the downward trend continues.
Whale Accumulation Points to Different Story
Large holders appeared to be taking a different view of Cardano’s prospects. On-chain tracking showed whale transfers worth millions of dollars leaving exchanges. This movement off exchanges typically indicates long-term accumulation plans.
The $0.58 to $0.60 price range has served as a key support zone. ADA has bounced from this level multiple times in recent months. The zone aligns with the 200-day moving average and previous structural lows.
Network Growth Continues Despite Price Weakness
Cardano’s network added over 100,000 new wallets in the past 60 days. This growth showed users were still actively joining and engaging with the ecosystem.
The steady wallet expansion happened during a period of broader market consolidation. New wallet growth often comes before price recoveries in cryptocurrency markets.
Technical analysis identified a potential double-bottom formation developing near the $0.58 to $0.60 range. A confirmed close above $0.66 to $0.68 could validate this pattern. The measured target for such a formation would be $0.74 to $0.80.
Some analysts noted a rounded reversal structure forming on the four-hour chart. This pattern resembled an inverted head-and-shoulders formation around the $0.60 level.
An alternative view suggested a deeper correction could still occur. One Elliott Wave analysis pointed to an ongoing A-B-C correction pattern. This scenario would see ADA potentially retest the $0.51 to $0.52 zone before establishing a firmer bottom.
The price was trading at $0.57 at the time of reporting, with the $0.60 level serving as the line between bearish continuation and early recovery signs.
The post Cardano (ADA) Price: Bears Push Token Below $0.60 While Whales Accumulate appeared first on CoinCentral.
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