Cardano’s (ADA) imminent descent into a substantial slump in price isn’t a pleasing prediction for crypto investors everywhere. However, in stark, unnerving alignment, several on-chain metrics signal a bearish outlook for the digital currency. These gloomy analyses find company with the hypothesis of a noted cryptocurrency analyst who speculates that ADA could plunge to lows of $0.4.
The falling course of ADA’s trading volume paints a discouraging picture. Early March’s peak in trading volume, as documented by on-chain analytics powerhouse Messari, has begun to pale in comparison to recent figures. The apex, recorded at a healthy daily trading volume of $1.53 billion on March 14, is long past as it slumped significantly to a dismayingly lower daily trading volume of $445.83 million by April 10.
According to IntoTheBlock, an additional trio of on-chain metrics relays a similarly bearish sentiment. The first, named ‘Net Network Growth,’ saw an unhopeful increase of a mere 0.17% over the past week. This metric accounts for the absolute count of ADA addresses and suggests the unpleasant reality of more users exiting, as opposed to entering, the ecosystem over this week.
Meanwhile, ‘In the Money,’ another pertinent metric, presented a decline of 0.20%. This metric quantifies the number of ADA investors currently profiting at ADA’s current price level – a yardstick that has unfortunately dipped over the last week. Along with this, large-scale ADA transactions above $100,000 have also reported a decrease of 2.60%, hinting at a possible tapering off amongst larger investors.
Adding fuel to the grim outlook is crypto analyst Alan Santana’s belief that ADA could experience a decline to between $0.4444 and $0.3450. This perceptive analysis is founded on his observation of a bearish trend that will persist until ADA discovers a bolstering support level on the charts.
But the derivatives market also isn’t offering much solace, as per data from Coinglass. Bears seem to wield an unequivocal sway over the ADA ecosystem. In the last 24 hours, ADA’s derivatives market has lost a substantial sum of $632,720, with the majority ($502,170) swept away from long positions. Moreover, there’s been an unwelcome 11% decrease in trading volume, indicating a possible decline in ADA popularity amongst crypto investors. Even more troubling is a surprisingly stark 92% dip in Options trading volume over the previous day.
While ADA’s current trading price hovers around $0.59 (a fair 1% increase over the last 24 hours), CoinMarketCap’s data isn’t enough to wipe away these prevalent bearish analyses. On this rollercoaster ride of investments, the importance of adequate research cannot be emphasized enough. The investor’s journey is fraught with risk and this narrative attempts to elucidate the ever-changing landscape of cryptocurrency, especially touching on the possible fluctuations around the promising yet uncertain world of ADA.
 metrics indicate a bearish outlook, with a potential plunge to $0.4. Expect lower trading volume, and less participation from large investors.){kind=link}