Long-term Cardano investors are transferring Token. A sign of a sell-off?

Early Friday morning, a large number of Cardano (ADA) coins broke free from their long-standing dormancy and started moving. This was accompanied by a spike in daily active addresses, indicating increased trading activity.

However, ADA 's muted price response over the past 24 hours suggests that the coin move may not be for bullish purposes.

ADA Token on the Move

Data from Santiment shows that ADA ’s age consumed index rose to a seven-day high of 6.33 billion on Friday morning. The index tracks the movement of coins held for long periods of time. So when it spikes, it’s notable. This is because long-term holders rarely move their coins. When they do, it’s usually before a change in market trend.

The increase in the ADA age index is accompanied by an increase in the number of active addresses currently trading the altcoin. According to data from Santiment, the total number of addresses involved in ADA transactions is 54,200, the highest in a single day since March 6.

While an increase in active addresses is usually a sign of optimism, the drop in ADA 's price following an increase in the age of consumption indicator suggests that a local top may have been reached, suggesting that the coin may continue to decline.

ADA Price Prediction : Price May Fall Further

Analysis from Cardano ’s one-day chart shows that the altcoin could continue to decline. For example, the coin’s Parabolic Stop and Reverse (SAR) indicator points, which indicate the direction and reversal points of the trend, are placed above its price. When the points are aligned like this, the market trend is bearish and the price will continue to fall.

Furthermore, the configuration of ADA ’s Moving Average Convergence Divergence (MACD) indicator shows that the MACD line (blue) is below the signal line (orange) and below the zero line. This indicates that ADA ’s price is gaining bearish momentum. Traders often interpret this as a sell signal, putting negative pressure on the asset’s price. If the downtrend continues, ADA ’s price will revisit the August 5 low of $0.27.

However, a recovery in demand for ADA would invalidate the above bearish predictions. If ADA sees a strong buying wave, this could push its price above the $0.39 resistance level. Breaking above this level could trigger a rally to $0.48.

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