Cardano [ADA] has seen a decline of 6.11% in the last 30 days, with indications pointing towards a potential further drop in price. The Global In/Out of Money (GIOM) indicator provided by IntoTheBlock classifies addresses based on profits, losses, and breakeven points, helping traders identify potential support or resistance levels.
At present, 402,720 addresses hold between $0.44 and $0.49 worth of ADA, suggesting that many holders may sell once the price reaches these levels, creating a potential resistance point. If this scenario plays out, ADA could retrace to $0.42 or even drop to $0.40 if selling pressure intensifies.
Despite the price standing at $0.43, there has been an 11.32% increase in large transactions on the network in the last 24 hours. However, this rise in transactions does not necessarily indicate increased buying pressure, as it could simply be tokens moving between wallets or some sell-offs taking place.
The number of active addresses on the Cardano network has decreased from 35,000 to 32,100, signaling a decline in unique addresses participating in transactions. This decrease in active addresses could lead to a downward trend in ADA’s price, as seen in previous correlations between network activity and token value.
Moreover, a decrease in Open Interest (OI) for Cardano indicates that traders are closing their positions, potentially causing ADA’s price to fall below $0.42 if this trend continues. The total amount of ADA holders remains at 4.47 million, indicating a lack of new buyers entering the market.
In summary, on-chain data suggests that Cardano may face further price declines if the current trends persist, with the failure to attract new buyers being a key factor to consider.