‘Big’ Trouble Ahead for Cardano? Why a 31% Drop Might Not Be the End
Cardano's ADA price dropped over 31% in November, facing downside risk due to weakening Chaikin Money Flow and increased coin spending.Summary
Cardano (ADA) experienced a significant downturn in November, falling over 31% while Bitcoin and Ethereum recovered. Analysis of key indicators suggests further weakness is possible. The Chaikin Money Flow (CMF), which tracks big money strength, recently broke below its descending trendline and is below zero, signaling capital withdrawal, mirroring a previous drop that preceded a 20% correction. Concurrently, the Spent Coins Age Band spiked to its highest weekly level, indicating increased supply release. The combination of waning large inflows and rising supply puts downward pressure on the ADA price, suggesting the recent correction may not be over. Key support levels to watch are $0.386, $0.354, and $0.302. A sustainable recovery requires ADA to break above $0.438, accompanied by CMF returning above zero and a cooling off in spent coin activity.
(Source：BeInCrypto)