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Cardano Rejected at $1.15 Resistance – What’s Next for ADA?
Cardano (ADA) has been on a decline in recent weeks, with its price falling by 23.8% in just seven days. As of the time of writing, the asset was trading around $0.716. It’s clear that investors have lost confidence in ADA, and the bears are currently in control.
Now that we’ve reached this point, it’s essential to examine key support levels and on-chain metrics to better understand what might happen next for ADA.
Firstly, from a technical perspective, it’s important to note that ADA has been rejected at its $1.15 resistance level. This is not a surprise, as the asset was expected to bounce off this point due to historical data. The recent decline could be a sign of increased selling pressure or a lack of buying demand.
The next logical step would be for ADA to find support between $0.56 and $0.51. If this happens, there is a possibility of a significant bounce back to the upside. In fact, the asset has historically shown a strong tendency to reverse its trend when reaching this point.
If history does indeed repeat itself, we could see ADA’s price surge above the earlier resistance level at $1 and potentially even higher if bulls regain control.
However, moving away from technical analysis, some on-chain metrics suggest that the bearish trend may not be over yet. Firstly, there has been a significant decline in the number of active addresses on Cardano, with data from Santiment showing a gradual drop since November 2024. This could indicate reduced investor engagement and weakened network utility, which might have long-term implications for ADA’s price.
Furthermore, looking at whale transactions on IntoTheBlock, we see that these large-scale transactions have been steadily dropping since late last year. As of the time of writing, only 4,730 whales were active – a nearly 50% drop from December levels.
This decline in major transactions could be seen as a sign of reduced investor confidence or shifting investment strategies. Considering this information, it’s likely that we might not see a strong rebound anytime soon.
In conclusion, based on both the technical and on-chain data presented here, it appears that ADA’s price movement is closely tied to the sentiment around its adoption and usage. If these metrics continue to deteriorate, the bears may have more control over the narrative than previously thought.
Source: https://ambcrypto.com/cardano-rejected-at-1-15-resistance-what-is-the-next-level-for-ada/
