Cardano (ADA) looks set to continue its downtrend as the number of active addresses trading the altcoin continues to decline.
Additionally, the number of large transactions involving ADA has decreased, indicating a decline in whale activity.
Cardano holders who do not accumulate more coins
According to data from IntoTheBlock, the daily number of active addresses that completed at least one ADA-related transaction has decreased by 36% over the past week . Similarly, the number of newly created addresses to trade altcoins has decreased by 46% over the same period.
A decrease in the number of daily active addresses and new addresses for an asset indicates a decrease in user activity and interest. This decrease means that fewer people are participating in cryptocurrencies, indicating a decrease in demand and weakening market sentiment.
The decline in ADA demand is further evidenced by the currently negative price-daily active addresses (DAA) differential, which has been in negative territory since August 7.
Read more: How to Stake Cardano (ADA)
The DAA divergence of an asset's price measures the change in price relative to the number of daily active addresses. This shows whether the price trend is supported by network activity.
As of this writing, the price DAA divergence for ADA is -30.89%. When both the price and price DAA divergence of an asset are falling, it means that the market is bearish. This means that interest in the asset is decreasing and there is less user activity on the network.
ADA Price Prediction: Whales Trying to Reduce Exposure
Over the past month, whales have increased the coin supply, as evidenced by the 244% decrease in net inflows from large holders over the same period.
This indicator measures the difference between the coins that whales have bought and sold over a certain period of time. A decrease indicates a surge in whale selling activity. This is often a bearish signal that prompts retail investors to diversify their holdings .
If demand for ADA continues to weaken, the next target price could be $0.27. The altcoin last hit this low on August 5 during a broad market downturn, and was previously traded at this level in October 2023.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
If it hits $0.27, it will represent an 18% drop from its current price of $0.33. However, if ADA demand picks up again , the price could rise to $0.40.
