Cardano (ADA) loses spot in top ten cryptocurrencies, replaced by Tron (TRX)
Cardano (ADA) has slipped out of the list of top ten cryptocurrencies by market capitalization, making way for Tron (TRX) which saw a 14% increase in the past week. ADA, on the other hand, only managed to gain 2% over the same period and is currently trading at $0.34. This shift in rankings is reflective of the overall downtrend in the market, with the global cryptocurrency market capitalization at $2.1 trillion, down 2% over the past seven days.
Cardano’s decreasing popularity
Recent on-chain data indicates a significant weakening in the ADA market, leading to a sharp decline in the asset’s daily active address (DAA) difference, which has hit a 90-day low. The Price-DAA divergence, currently at -41.41%, assesses whether network activity supports the price by comparing an asset’s price movement to daily changes in active addresses.
The narrowing price difference with DAA suggests that only a small number of unique addresses are participating in transactions relative to the price, indicating potential speculation or manipulation by a select group of investors. Despite a slight increase in price, the daily on-chain transaction volume and profit and loss ratio have peaked, with the ratio currently at 2.20, the highest level since January 2023 according to Santiment.
Read more: How to buy Cardano (ADA) and everything you need to know
ADA Price Prediction: Potential for a price surge
Analysis of ADA’s movement on the 1-day chart indicates an attempt to break above the 20-day exponential moving average (EMA), a key level that could signal a short-term bullish phase. Breaking above the 20-day EMA suggests continued price momentum, potentially leading to a price increase to $0.40.
Read More: Cardano (ADA) Price Prediction 2024/2025/2030
However, a reversal in trend could see the token’s value drop to $0.27, the price it last traded at during the market downturn on August 5. Traders and investors are closely monitoring ADA’s price movement for potential opportunities.
