Cardano’s long-term price will depend on THESE factors

• Cardano price consolidated around $0.37, with fluctuations indicating bearish momentum
• Increase in new adoption signaled growing interest in upcoming updates

Cardano expects a significant network upgrade soon, which could lead to a price increase for ADA. In fact, the latest report from Cardano’s parent company Input Output Hong Kong (IOHK) highlighted advancements in smart contracts, wallet services, core technology, and more.

Hence the question: Is ADA preparing for a breakup now?

Market sentiment and price trends.

Since January, Cardano’s active address percentages have been declining, while the price remained relatively stable until a sharp drop in May.

The increase in zero balance addresses that began in late March was correlated with the price drop. It implied that more holders have been liquidating or abandoning their positions as the price fell on the charts.

The new adoption rate peaked in early February, but saw a significant decline shortly thereafter, inversely related to price movement, until a sharp rise in new adoption in June. This increase is obviously related to the upcoming updates, and many in the community are also excited as expected.

Now, although ADA has recovered on the charts, it has failed to maintain its upward momentum. This is a sign of an ongoing bearish trend and a cautious or even negative response from investors.

Furthermore, ADA price has shown a tendency to consolidate around the $0.377 level, with minor fluctuations indicating a lack of strong directional momentum.

The 50-period moving average (red line) seemed to be acting as resistance around the $0.385 level, while the 200-period moving average (blue line) around $0.376 served as short-term support.

The MACD line and Signal line also showed multiple crossovers. These crossovers were relatively close to the zero line on the charts, indicating that the momentum, whether bullish or bearish, has not been particularly strong.

Here it is worth noting that when ADA fell on the price charts, it was accompanied by an increase in volume, which contributed to an increase in selling pressure.

Finally, the high percentage of out-of-the-money addresses is a sign of widespread bearish sentiment and price pressure. Especially if holders decide to sell to reduce losses as the price rises near their entry points.

If upcoming updates improve ADA performance and usability, they could change these ratios, moving more addresses into the “in the money” category. By doing so, it could possibly push the price higher as confidence in Cardano’s future returns.

This is an automatic translation of our English version.