Cardano’s Trading Activity Crashes to a 6-Month Low — Can ADA Still Attempt a Reversal?
Cardano's decentralized exchange trading volume plummeted 94% to a six-month low, yet technical indicators suggest a potential bullish reversal above $0.30.Summary
Cardano's on-chain trading activity has collapsed, with weekly decentralized exchange volume dropping over 94% since August, hitting a six-month low, which mirrors the 68% price decline over the same period.
Despite this weak network participation, technical analysis suggests a potential reversal is forming, specifically an inverse head-and-shoulders pattern on the daily chart. Confirmation of this bullish pattern requires the price to close above the $0.30 neckline, which could lead to a rally toward $0.40.
Supporting the potential reversal is a bullish divergence on the RSI, indicating weakening selling pressure. However, risk remains as the percentage of Cardano supply in profit is rising, which historically triggers profit-taking sell-offs, as seen when a small price drop followed a recent rise in profitable supply. The critical decision point is the $0.30 resistance level; breaking it confirms the reversal, while a drop below $0.27 invalidates the bullish structure.
(Source：BeInCrypto)