Cardano (ADA) experienced a significant rise, reaching a two-year high of $0.81, before pulling back to $0.75, indicating a 5% decline. The combination of on-chain and technical indicators suggests this downward trend might persist, preventing ADA from reaching the $1 milestone it last achieved in 2022.
Recent data reveals a spike in exchange netflows, with $7.21 million recorded, indicating profit-taking activity among Cardano holders. This trend suggests increased selling pressure contributing to the downturn in ADA's price, emphasized by a notable drop in trading volume.
The high profit-to-loss ratio, with 3.35 transactions being profitable for every loss, signals a potential sell opportunity for traders, adding to the selling pressure. If buying pressure remains weak, prices may further decline to support levels such as $0.69 or even $0.61.
However, a shift in market sentiment and renewed interest in ADA might reverse the downward trend, allowing prices to breach the recent high of $0.81. The overall market participation remains crucial for determining Cardano's next direction in the price movement.
