Cardano tells another story despite ADA’s northward move

Journalist

Posted: November 17, 2023

• AMB surpassed the $0.40 psychological stage, however lively addresses didn’t develop.
• Technical indicators recommend an additional hike for ADA.

For the previous couple of days, Solana [SOL] has been the best-performing cryptocurrency out of the highest 10 per market capitalization. However, within the final 24 hours, SOL has handed that baton to Cardano [ADA].

AMBCrypto critically seemed on the ADA worth motion and noticed that the token worth had elevated by 11.24 inside the aforementioned timeframe. Within the course of, ADA broke the $0.40 psychological stage.

Whereas this hike served as a formidable displaying, the identical couldn’t be mentioned of the Cardano community. One motive for this was due to the Value-Every day Lively Addresses (DAA) divergence.

Dwindling exercise now shouldn’t be dangerous information

In keeping with AMBCrypto’s evaluation of Santiment’s information, lively addresses on the Cardano community decreased as the worth surged.

For context, the DAA is likely one of the finest on-chain metrics for evaluating total consumer activity on a blockchain.

The metric additionally has a major affect on a cryptocurrency’s worth. At press time, ADA’s price-DAA was -43.16%.

Utilizing the price-DAA divergence technique, the worth development over the lively addresses might function a purchase sign for brief to mid-term traders.

Supply: Santiment

If the Cardano DAA had outpaced the worth, then it might have been a sign to promote. Usually, ADA’s uptrend inside such a brief interval might need left market gamers questioning if it was a very good entry time.

However from the metric talked about above, shopping for ADA at $0.40 might not be a foul concept.

From the ADA/USD 4-hour chart, the 9-day EMA (blue) had crossed over the 20 EMA (yellow). This flip signifies that the token’s pattern was nonetheless bullish. So, the ADA worth could proceed to extend.

The Accumulation/Distribution (A/D) line additionally supported the uptrend. 

This was as a result of the A/D surged, suggesting that there was extra accumulation than distribution of ADA. By way of entry/exit, one indicator to think about is the Know Certain Factor (KST).

A purchase sign happens when the KST crosses above the zero line, indicating a optimistic shift in momentum. Conversely, when the indicator goes under the zero line, merchants ought to take it as a promote sign.

Supply: TradingView

Merchants are prepared to tug the set off

On the time of writing, the KST had closed in on crossing the zero line. So, merchants ought to fastidiously observe the pattern at this level.

If the KST lastly jumps above the zero midpoint, alongside the aforementioned DAA divergence, then ADA could also be prepared for one more uptick.

Moreover, it appeared merchants have been already taking the treatment from the on-chain information and technical perspective. This was indicated by the funding rate. 

Learn Cardano’s [ADA] Price Prediction 2024-2025

A optimistic funding fee implies that merchants are bullish on a cryptocurrency.

Then again, a detrimental funding fee suggests a bearish sentiment. At press time, ADA’s funding fee was 0.01%, confirming the bullish bias merchants have.

Supply: Santiment