- Long-term investors hoarding tokens and market downturns are to blame for the price problems with ADA.
- Technology like the Hydra upgrade may help ADA recover from market challenges.
Cardano’s ADA cryptocurrency has been struggling lately; it has remained flat as a result of long-term holders holding off on transferring their assets. With the release of Hydra version 0.16.0, as previously reported by ETHNews, there has been a significant technological advancement, but the market sentiment is still negative.
The Price of ADA and Market Trends
According to recent data from CoinMarketCap, ADA is presently trading at roughly $0.4534, down 2.43% over the last day and a significant 25.75% over the previous week. These numbers support the crypto market’s gloomy trend.
[mcrypto id=”12352″]The Mean Dollar Invested Age (MDIA), a measure of Cardano network activity, just reached 269, indicating a decline in transaction activity. This increase may mitigate any favorable price fluctuations because it indicates that long-term investors are keeping their tokens rather than putting them back into circulation.
A mixed picture is presented by additional indicators, including the Relative Strength Index (RSI) and the Mean Coin Age (MCA). The increase in the MCA suggests that major holders are likely taking a wait-and-see stance about aging coins that are not being cycled through the market.
On a 4-hour chart, the RSI is 50.58, indicating that although bulls are present, they are not in complete control. In the near run, ADA price may be limited between $0.46 and $0.49 due to this ambivalence in the buying impulse.
Prospects for the Future
A bearish trend is indicated when the 50 Exponential Moving Average (EMA) crosses over the 20 EMA, also referred to as the “death cross.”
But ADA recently broke above the 9 EMA, suggesting a potential bullish surge. Should ADA be able to effectively breach the resistance level at $0.50, it may aim for $0.53.
On the other hand, a loss might drive the price down to the $0.45 support level. For a deeper dive into these developments, a detailed explanation is available in this YouTube video.