Cardano Drops 4% as NPL Turns Negative, ADA Risks Falling Toward $0.84
Cardano (ADA) is under pressure, trading at $0.91 on Tuesday after dropping 4% in the previous session...
Quick overview
- Cardano (ADA) is currently trading at $0.91 after a 4% drop, indicating bearish sentiment among investors.
- Santiment's Network Realized Profit/Loss indicator has significantly declined, suggesting potential capitulation and short-lived bounces.
- Technical analysis shows ADA is fragile, with key support at $0.84 and weakening momentum indicators.
- Despite the current challenges, some analysts believe a stable base at $0.84 could lead to a healthier correction and future rallies.
Cardano (ADA) is under pressure, trading at $0.91 on Tuesday after dropping 4% in the previous session. On-chain metrics are showing bearish sentiment as investors are taking losses on their holdings.
Santiment’s Network Realized Profit/Loss (NPL) indicator, which measures daily return on investment based on transaction volumes, plummeted. NPL went from 23.13 million on Sunday to -26.56 million on Monday. This kind of negative move has historically led to capitulation and short lived bounces.
Adding to the bearishness, CryptoQuant’s Taker CVD (Cumulative Volume Delta) is negative and widening. This means “sell dominant” phase where sellers are more than buyers, putting more pressure on ADA.
Cardano Technicals Suggest More Downside
From a technical perspective, Cardano is looking fragile. After surging above $1 psychological level on August 14 with 20% weekly gain, ADA lost momentum and dropped 3.88% on Monday.
Currently, the price is at $0.91 support but signals are pointing to more downside:
- Key Support: $0.84, a critical area if bearish momentum continues.
- RSI: 61, down from overbought levels, means bullish strength is fading.
- MACD: Weakening green bars, means momentum is slowing down and may continue bearish.
If ADA breaks $0.84, more downside could follow. But if it recovers above $0.91, it may retest $1 and keep hopes alive in the medium term.
Stable Support Could Trigger Rebound
Despite the bearish mood, some analysts think ADA’s decline may lead to a healthier correction before the next up move. Investor capitulation and technical pullbacks often set the stage for new rallies once selling pressure subsides.
Key to watch in the next sessions:
- ADA holds above $0.84.
- NPL data shows reduced investor losses.
- CVD metrics stabilizes and selling pressure eases.
For now, Cardano investors are facing short term challenges but a stable base at $0.84 could be the foundation for the next move higher.
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