Although the decline in the price of Cardano [ADA] initially meant disaster for token owners, it also created the groundwork for some annual highs. Several on-chin measures, including the volume and active addresses, peaked when ADA recovered between June 10 and 11, according to Santiment.
This price increase indicated that the Cardano network’s utility and transaction volume had increased. Price growth that nearly reached 10% in a single day suggested increased buying pressure. It also increased ADA’s overall performance advantage over other cryptocurrencies.
Despite recent price fluctuations, the ADA token was still down 21.23% over the previous week as of the time of publication. It might be a good idea to determine whether ADA’s price ranges offer a good chance to enter the market.
According to the daily data, ADA has been unable to surpass the $0.385 level since May 6. The resistance held firm even during a time when there was a lot of accumulation, holding back the price.
Recent selling pressure, however, has diminished the value and caused the price to fall to $0.278. Bulls, though, were attempting to return the price to the $0.3 area at the time of writing. However, how long the support level at $0.262 would hold is still a factor.
The Chaikin Money Flow (CMF) remained positive during this time. The CMF showed the market was in an uptrend at 0.50.
Since the value at the time of writing had crossed the 0.20 mark, it might be a hint that ADA was overbought and that the price should continue to decline. Therefore, it might be risky to assume that the current price of ADA is a favourable entry opportunity for the short term.
DAA Overtakes Cardano’s ADA
Santiment revealed that the price-Daily Active Addresses (DAA) divergence was -27.27%. The measure has historically been useful in establishing entry and exit points.
This statistic evaluates the way the larger market values a token while setting the context for the link between price and DAA.
This, however, is based on how the DAA and price are moving in relation to one another. Historically, an exit point has been demonstrated to be a price increase greater than the DAA. The same thing also occurs when the price drops more than the DAA.
The DAA was surpassing the cost with ADA, though. Therefore, if there are no major market turbulences, ADA’s price at press time may be near to a short-term entry opportunity.