ADA Price Prediction: Potential Decline and Resistance Levels

ADA Price – Understanding ADA’s Weighted Sentiment and Its Effects

ADA Price – Charles Hoskinson, the founder of Cardano, has recently stirred the crypto community by asserting that the upcoming Leios upgrade will significantly boost Cardano’s transaction speed, potentially surpassing Solana in performance. Despite these ambitious claims, Cardano’s native token, ADA, has exhibited minimal reaction to the news. In the last 24 hours, ADA’s price has dropped by 1%, and trading volume has decreased by 15%.

Details of the Ouroboros Leios Upgrade

The Ouroboros Leios upgrade is poised to be a major improvement for Cardano, marking a significant enhancement since the Chang hard fork was implemented in early September. According to a recent paper from the network’s developers, the Leios upgrade will introduce tiered transaction fees and accelerate chain synchronization. Hoskinson is confident that these upgrades will make Cardano faster than Solana, a bold assertion that continues to position Cardano as a formidable competitor in the “Ethereum killer” arena.

Muted Market Reaction

Despite Hoskinson’s optimistic projections, Cardano’s price response has remained subdued. At the time of writing, ADA is trading at $0.33, reflecting a 1% decline over the past 24 hours. The trading volume has also declined by 10% during the same period. Additionally, ADA’s negative daily active address (DAA) divergence—an indicator measuring price movements against changes in the number of daily active addresses—further underscores the tepid demand for the altcoin. Data from Santiment reveals that this metric has consistently posted negative values since September 8, signaling a downward trend in buying activity.

Sentiment Analysis and Price Trends

The drop in ADA’s demand is attributed to a shift in market sentiment from positive to negative. Currently, ADA’s weighted sentiment stands at -0.20, indicating that social media discussions are predominantly negative, driven by fear, uncertainty, and doubt. This negative sentiment is a key indicator of a sustained downtrend in ADA’s price.

ADA Price Prediction: Potential for Further Decline

An analysis by BeinCrypoto highlights that ADA has been trading within a descending triangle pattern since July 15. This bearish formation, characterized by a series of lower highs and a horizontal support level, suggests that ADA is approaching a critical juncture. Currently, ADA’s price is nearing the support level at $0.31. If the price falls below this level, it would confirm the bearish trend, potentially leading to a further decline of 12% to the August 5 low of $0.27.

Conversely, if ADA can reverse its downtrend and experience a resurgence in demand, it could break through resistance at $0.36 and target a potential high of $0.47.

Conclusion

As Cardano prepares for the Leios upgrade, Hoskinson’s claims of outperforming Solana have not yet translated into positive market movements for ADA. The current market conditions and sentiment suggest a cautious outlook for ADA, with potential for further declines if key support levels are breached. However, a positive shift in demand could enable ADA to overcome resistance and achieve higher price targets.

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