Cardano

Value

<ul> 
 <li>Cardano (ADA) experiences major price drop, reaching levels not seen since November 2023.</li> 
 <li>Technical indicators and on-chain metrics suggest potential for further decline.</li> 
 <li>Market structure and investor sentiment point towards bearish momentum in the short term.</li> 
</ul> 
<a href="https://thenewscrypto.com/?s=Cardano" target="_blank" rel="noreferrer noopener">Cardano</a> (ADA) has found itself at the epicenter of a market-wide downturn, shattering hopes of an imminent bull run. The digital asset’s value has plummeted to $0.30, a price point not witnessed since the closing months of 2023. 
<h2 class="wp-block-heading" id="h-decoding-cardano-s-in-out-of-money-around-price-iomap-metric">Decoding Cardano’s In/Out of Money Around Price (IOMAP) Metric</h2> 
Delving into on-chain analytics, the IOMAP data paints a concerning picture for ADA’s immediate future. This sophisticated metric, which categorizes wallet addresses based on their profit and loss status at various price levels, reveals a troubling imbalance. 
A substantial cluster of 106,850 addresses, holding 572.21 million <a href="https://thenewscrypto.com/?s=ADA" target="_blank" rel="noreferrer noopener">ADA </a>tokens, finds itself underwater at the $0.31 mark. In contrast, only 35,460 addresses, representing 451.95 million tokens, remain in the green between $0.28 and $0.30. 
<figure class="wp-block-image size-large">
 <img decoding="async" width="1024" height="244" src="https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-1024x244.png" alt="" class="wp-image-104926" srcset="https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-1024x244.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-300x72.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-768x183.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-1536x366.png 1536w, https://thenewscrypto.com/wp-content/uploads/2024/08/image-23-2048x488.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://app.intotheblock.com/coin/ADA/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="noreferrer noopener">IntoTheBlock</a>
 </figcaption>
</figure> 
The disparity in address distribution highlighted by the IOMAP creates a precarious scenario for ADA’s price stability. The current support at $0.30 appears fragile, potentially buckling under the weight of sell pressure from loss-bearing investors eager to break even. 
Should this support level crumble, Cardano could face a drop towards the $0.28 threshold, opening the floodgates for further bearish momentum. 
Further compounding ADA’s woes, the Market Value to Realized Value (MVRV) Long/Short Difference indicator flashes a warning sign. Currently registering at -10.79%, this metric suggests that short-term holders are outperforming their long-term counterparts in profit realization. 
Historical data indicates that a reading approaching -19.33% often coincides with the onset of a bear market, placing ADA perilously close to this critical juncture. 
A confluence of technical indicators on Cardano’s daily chart shows the bearish narrative. The Supertrend indicator, a versatile tool for identifying price direction and generating trading signals, has positioned itself above ADA’s price since it traded at $0.42. This configuration typically heralds a sell signal, foreshadowing the recent price collapse.

Cardano’s Downward Spiral: Analyzing the Storm of Bearish Indicators

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