- The price action of Cardano has been on a severe slump throughout November.
- The bears have dominated Cardano’s charts with an iron hand throughout November.
- However, the ADA network has seen a 90% increase in daily active users.
The price action of Cardano has been on a severe slump throughout November. The technicals on the ninth largest cryptocurrency by market cap show mixed signals as the market consolidates and tries to recover from the after-effects of FTX’s collapse.
The technical indicators on Cardano, for example, point to a comeback as the price consolidates. At the same time, on-chain data implies that investors are starting to consider locking in their profits as quickly as possible. To determine ADA’s likely future move, key levels have been established.
The bears have dominated Cardano’s charts with an iron hand throughout November, leading to the self-described “Ethereum killer” losing 30% of its already weakened market value over the last 20 days. Crashing from a price above the $0.3 mark, Cardano hit a yearly low of $0.2995 and has since managed to break above the $0.3 zone once again.
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However, technical and on-chain indicators are starting to show that the Cardano bottom may be approaching.
The same can be said for the on-chain metrics on Cardano, according to the Adaverse News Twitter handle.
Cardano Sees 90% Increase in Daily Active Addresses
According to a tweet from Adaverse News, the real-time update provider on the Cardano ecosystem, the ADA network has seen a significant 90% increase in daily active users. The network’s number of delegated wallet addresses has hit 1.2 million addresses.
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At the same time, the cryptocurrency’s price action over the last few days has been bumpy. As of Friday, the cryptocurrency has risen from an intra-day low of $0.038 to a high of $0.3173 before resting at $0.311, where it now sits.
Proceedings from the FOMC meeting on 23 November boosted the crypto market, with several cryptocurrencies rising above their previous lows and even breaking a few weak resistances. However, ADA could not take advantage of this market pump for long-lasting upward momentum and is down by 1.8% over the last day.
However, this 90% increase in the number of active addresses on the Cardano network may also be due to the selling pressure brought on by the last two days of bearishness ADA has experienced.
Cardano is known as one of the most solid projects in the crypto space regarding developer activity. Another explanation for this 90% increase in active addresses is that the spike resulted from increased development activity on the Cardano network.
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Cardano (ADA) Price Analysis
Following a bearish November for Cardano, its Bears still appear to be in charge of the charts.
This became especially evident after an unsuccessful attempt to break the $0.378 level (blue horizontal line) when the FTX crash first hit in early November. The cryptocurrency’s price plummeted after its rejection from this price level and hit the $0.32 zone (green horizontal line) in a -15% bearish move that lasted ten days.
After the 10-day consolidation and Cardano’s failure to rise again from this level, the bears finally won again, pushing the price of the cryptocurrency below $0.32, where it now trades.
The bearish dip below the $0.32 zone took Cardano to a bottom of $0.29, from which it has risen for a retest of the $0.32 zone. However, the bears have rejected the cryptocurrency again, trading at $0.311.
However, the cryptocurrency still trades below the neutral zone on its daily RSI, increasing the likelihood of further price movement to the upside.
If Cardano manages to break the $0.32 zone and close above it, another retest and possible breakout from $0.378 may be in sight.
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