- Cardano’s price is expected to drop to around $0.3 over the short term in order to collect liquid.
- A downtrend on the MDIA may be an important signal to bulls for a re-entry.
Cardano [ADA] The breakout was made in mid-July but the progress halted just before it was fully established.
Then there’s the fact that the Bitcoin [BTC] ADA dropped to $0.275 earlier in the week following a panic-driven sell-off.
In recent weeks, the data indicated that this asset had been very volatile. All the other indicators were mixed and favored bears more so than bulls. The social media sentiment remains strong, despite the recent price decline.
What is the return on ADA investment?
Cardano’s volatility was highly volatile in July, as shown by the 30-day variation. This metric dropped to 58.18% due to the persistent drop of price in the first weeks of August.
Long-term investors are looking for low volatility to signify steady and persistent accumulation.
AMBCrypto compared Cardano volatility with Bitcoin using the Beta coefficient. The value was 0.86 as of the press date, which means its price is less volatile.
It was also shown that ADA would be preferred by conservative investors.
Most aggressive traders will aim to maximize their returns while being willing to tolerate the higher volatility of BTC relative to other assets.
This zone of $0.3 to $0.326 has been highlighted as being the largest support area around the current price. The region was confluent with the lows of July but breached Monday.
The clues are still not enough? next Prices are rising.
The seven-day period of lookback showed that a clustering of liquidation rates could have an impact on a reversal.
Due to the recent financial crisis, it was impossible to build up a significant amount of liquid assets, which is a more realistic target.
This data is a support for the findings of technical analysis and inflow/outflow money.
Weighted Sentiment remained positive, an unexpected development following the recent price drop below $0.3. The weighted sentiment was positive, a surprising development after the price crash below $0.3.
This is a good sign for those who have been holding their property for a long time.
Click Here to Read Cardano’s [ADA] Price Prediction 2024-25
However, the average dollar invested age continues to increase. Since March, the 180-day MDIA is now at levels that are close to October 2023. The MDIA showed stagnation, and that there was no new capital coming in.
The metric would begin to fall if it begins to show a downward trend. This is a good sign that ADA will be ready for a prolonged rally.
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Source: ambcrypto.com