- The price of ADA has been trending downwards, with many double-tops and lower highs.
- Bollinger Bands tightening and an MACD that is flat are signs of low volatility.
Although the performance has been weak over the past few months, Cardano [ADA] On-chain data shows that the market showed strong signs of support.
Moreover, the network has seen an uptick in total value locked (TVL) in DeFi applications, reaching levels twice its peak during the 2021 bull market.
IntoTheBlock shows only 30 percent of ADA holders currently are making a profit. This means that a substantial portion of the market has losses.
ADA shows a relatively high degree of control by whales, with 28% held by the largest investors. This could have an impact on price stability, and even manipulation risk.
ADA has large-scale investors
An enormous $34.46 billion of transactions in the past seven days highlights the massive movements in institutional and large-scale investors, including both outflows as well as inflows.stake Engagements in ADA
ADA showed a downward trend during the time of press, which is especially noticeable when compared to the lower highs that have been consistent since the beginning of June. The trend was in line with the negative sentiment.
Bollinger bands on the chart often indicate low volatility because they are tight.
ADA price oscillates closely around middle band. It shows a lack bullish or negative momentum consistent with a phase of consolidation.
Moving Average Convergence Divergence, or MACD for short, was flatlined at 0, reinforcing bands’ feelings.
The chart shows a number of double-tops, which are usually recognized as indicators for reversal in the bearish direction.
ADA was also trading below the average price of all moving averages. This can be a sign that ADA is heading in a downward direction. If the price of ADA is below the moving averages, it generally indicates that there is a downward momentum.
The ADA price fluctuates between high resistance and low support.
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Chart shows that ADA faces resistance each time it attempts to rebound and is unable to set a new peak, instead conforming to lower peaks which outline double-top patterns.
The RSI fluctuates between 50-60, indicating a market that is neutral with a slight tendency toward bullish sentiment.
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Source: ambcrypto.com