Cardano (ADA) has fallen from its position among the top ten cryptocurrencies by market capitalization. Tron (TRX) has taken its place, after a notable 14% increase over the past week.
Meanwhile, ADA only saw a modest 2% rise during the same period and is currently trading at $0.34. This slip in Cardano’s ranking aligns with a broader market downturn, as the global cryptocurrency market capitalization decreased by 2% over the past week, now standing at $2.1 trillion.
Cardano’s Market Weakens Further
Recent on-chain data indicates a significant weakening in Cardano’s market. The price-daily active address (DAA) divergence has dropped to its lowest point in over 90 days, currently at -41.41%.
Over the past 24 hours, while ADA’s price increased by 2%, its price-DAA divergence has declined. This suggests that fewer unique addresses are participating in transactions. This could signal speculative activity or possible manipulation by a small group of investors.
Despite this, the daily on-chain transaction volume in profit versus loss has peaked. It has a ratio of 2.20—the highest since January 2023. This means that for every transaction resulting in a loss, 2.20 transactions have been profitable.
ADA’s Price Outlook: Potential Rally or Decline?
On the technical front, ADA is attempting to break above its 20-day exponential moving average (EMA). It is a key indicator that tracks its average price over the last 20 trading days. Successfully crossing this level could indicate a short-term bullish trend, potentially driving ADA’s price toward $0.40.
However, if ADA fails to maintain this momentum and instead declines, its price could drop to $0.27—a level last seen during the market downturn on August 5.
