Cardano‘s (ADA) price is struggling to surpass resistance points of significant moving averages. The recent Chang hard fork upgrade does not seem to have created the expected price fluctuation. Despite the volatility seen in Bitcoin (BTC) on August 14 pulling ADA’s price down, the asset experienced a quick recovery. However, spot trading data indicates that ADA is still in a downtrend, further highlighted by the stagnation of its user base.
Cardano Shows Strength Against Bitcoin in a Difficult Period
In the last 24 hours, ADA price fell by 1.1% to trade at $0.337. Despite this drop, ADA showed a 3.8% increase against Bitcoin. This rise reflects a general market trend along with XRP‘s 2.8% and Solana’s 4.3% performance against BTC.
A closer look at Cardano’s network status and investor behavior reveals that the asset is going through a tough period. Despite the excitement brought by the Chang hard fork, network data does not paint a positive picture. According to IntoTheBlock data, the number of active wallet addresses has been around 4.45 million for the past year, indicating network stagnation.
However, the fact that long-term investors hold 40% of the total ADA supply shows high confidence in the network and could potentially be a positive sign for the price.
Expectations of a Decline in ADA Price Strengthen
On the other hand, Coinglass Liquidation Map data reveals a negative investor sentiment dominating ADA’s price. On August 14, the total liquidation leverage value in long positions was $2.28 million, while in short positions, this value reached $3.05 million. This imbalance indicates that the market expects further decline in ADA’s price.
ADA’s price is likely to pull back to the $0.3 level in the short term. This level is seen as a critical psychological support point, and if the price holds here, it could offer a recovery opportunity.
Technical indicators also support this downtrend. Especially the MACD indicator is in the negative zone, indicating that the downward momentum continues.
