More Losses Ahead For Cardano, On-Chain Data Shows

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More losses ahead for Cardano as the on-chain data metrics show with ADA plummeting over 45% after the transition to proof-of-stake. Cardano continues making lower highs and lower lows and there are no signs of recovery insight as we are reading in our Cardano coin news.

There are different indexes that show that the downtrend will remain intact for the time being and if this continues, ADA will drop to $0.08 or lower. The hype around Cardano’s staking rewards continues to fade as multiple technical and on-chain metrics are having a hard time holding up inflated ADA prices.

ada/usd
ADA/USD on TradingView

In late July, right after the Shelley mainnet, Cardano suffered a major correction. Since then, the price has been falling and even dropped by 45% to reach a low of $0.085. Despite the losses incurred, there are different technical and on-chain metrics that suggest the smart contract’s token will fall further.

There are even more losses ahead for Cardano according to the charts. In the 4-hour chart, ADA seems to have broken out of the symmetrical triangle in a downtrend direction. The distance between the highs and the lows of the technical pattern shows that the ETH killer could plummet another 10%. Under these circumstances, a further increase of the selling pressure behind ADA could see the prices making a lower low of $0.080. The downward trend in the network is only adding credence to the bearish outlook. The number of new daily ADA addresses declined steadily and about 11,000 addresses joined the network in the meantime.

cardano
Cardano’s New Daily Addresses by IntoTheBlock

This number dropped to $4,600 a day which represents a 58% drop. The downward trend in the network growth is a huge red flag for the price growth in the near future which usually happens with a sustained decline in the network growth. This could also be a leading indicator of dropping prices. The lack of newly created addresses also affects the regular inflow and outflow of the tokens. if another decline is to happen, the IOMAP model shows that there are not major supply barriers underneath the cryptocurrency. with the lack of support walls, ADA could reach the target that is presented in the symmetrical triangle as we mentioned above.

cardano ada iomap
InOut of the Money Around Price by IntoTheBlock

With all that said, the bullish outlook cannot be taken out of the question because of the unpredictability of the market. The IOMAP model shows that if buy orders start to pile up, Cardano bulls will have a hard time pushing the prices above $0.096. More than 22,000 addresses were purchased over 2.4 billion ADA coins.

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