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Cardano Price Prediction: On-Chain Analysis Points to More Pain

The Cardano price is struggling to find direction. ADA is trading at $1.3147, where it has been in the past few days. It is also 46% below its all-time high while its total market capitalization has dropped to more than $41 billion, making it the 5th biggest digital currency in the world. While this price action is correlated with that of other coins, on-chain data shows that Cardano is facing significant challenges. Let us see some of the key on-chain metrics.

Cardano on-chain analysis. The first chart below shows that the number of large transactions in Cardano’s network peaked in May. This coincided with the time when ADA price rose to its all-time high of $2.47. Now, the number of large transactions has declined sharply in the past few weeks. In fact, the transactions have dropped to the first week of this year. Most importantly, the volume of transactions has also dropped to sharply, signaling that activity is slowing down.

Another notable metric on Cardano is that the average balance has dropped spectacularly in the past few months. The average balance has declined to $23,387, which is below the seven-day average of $24,200. At its peak in May, the average balance was more than $47,000, meaning that it has fallen by almost 50%.

The Cardano price decline has also led to a sharp decline in the number of daily active addresses. The addresses have fallen by more than 14.80% in the past seven days. At its peak in May, Cardano had more than 74,000 new daily addresses. The number has dropped to less than 30,000.

Other data shows that the transactions volume has crashed. The ownership composition has also changed as the number of HODLERs has continued declining. They have been trounced by Cruisers, who are defined as people who have owned the coin for between 1-2 months. 

Cardano price prediction

The daily chart shows that the Cardano price has been in a tight range recently. As a result, the coin has moved to the coin is hovering at the 50-day and 100-day exponential moving averages (EMA). It has also formed what looks like a head and shoulders pattern. Therefore, there is a possibility that ADA will break out lower. This will be confirmed if the coin manages to move below the important support at $1.0225. On the flip side, a move above the neckline at $1.6 will invalidate this trend.

ADA price chart

Cardano Price

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