- ADA price trended lower, with consistent lower highs and several double top formations.
- Narrow Bollinger Bands and a flat MACD indicate low volatility.
Despite the poor performance over the past month, Cardano [ADA] It showed signs of strong support, as indicated by on-chain data.
Furthermore, the network has seen an uptick in total value locked (TVL) in DeFi applications, reaching levels double their peak during the 2021 bull market.
IntoTheBlock data shows that only 30% of ADA holders are currently profitable, meaning a large portion of the market is experiencing losses.
Source: IntoTheBlock
With 28% of ADA owned by large investors, the token shows a fairly high level of whale control, which could impact price stability and potential manipulation risks.
From ADA investors widely
Over the past week, the massive $34.46 billion volume of large transactions highlights institutional or large-scale investor movements, which can be inflows and outflows, reflecting active, high-risk engagements in the ADA.
ADA price showed a downward trend at the time of writing, which was especially noticeable from the continuous lower highs since the beginning of June. This trend is consistent with bearish sentiment.
Source: Trading View
The Bollinger Bands on this chart are relatively narrow, often indicating low volatility.
ADA price oscillates closely around the middle band, indicating no significant upward or downward momentum, consistent with a consolidation phase.
The Moving Average Convergence-Divergence (MACD) was steady at zero, which strengthened the range sentiment.
There were several double top formations across the chart below, which are commonly recognized as bearish reversal indicators.
Source: Trading View
Moreover, ADA price was below all the moving averages, which can be considered a bearish signal. When the price is below these lines, they generally indicate that the overall momentum is heading downward.
ADA price fluctuates between higher resistance points and lower support levels.
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The chart shows that every time ADA tries to recover, it encounters resistance and fails to create a new high, corresponding instead with lower highs, which define double top patterns.
Interestingly, the RSI oscillates between 50 and 60, indicating a neutral market with a slight bias towards bullish sentiment.
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