The post Cardano’s 20-Day EMA – The 10% drop could be a sign of… appeared on BitcoinEthereumNews.com.

ADA’s buying pressure waned as the coin’s price fell under the 20-day EMA Its Futures Open Interest has declined since the beginning of June too Cardano [ADA] fell below its 20-day exponential moving average (EMA) on 7 June, and its value has since declined by almost 10%. At the time of writing, the altcoin was valued at $0.41, according to CoinMarketCap.  ADA’s 20-day EMA represents its average price over the past 20 days. When its price falls below this level, the coin trades at a level lower than its average price over the last 20 days. Source: TradingView It is a bearish signal that hints at a decline in buying pressure and a rally in coin sell-offs. The spike in ADA sell-offs over the past week can be partly attributable to how profitable sales transactions involving the altcoin have been during that period.  AMBCrypto assessed ADA’s daily ratio of transaction volume in profit to loss (using a seven-day moving average), and it returned a value of 1.01 at press time.  This metric tracks the ratio of an asset’s daily transactions that return a profit to those that end in a loss. At the time of writing, for every ADA transaction that ended in a loss over the past week, 1.01 transactions brought about profit, Santiment revealed. However, a significant number of ADA investors continue to sit on unrealized losses. According to IntoTheBlock, for instance, 3.04 million addresses that make up 68.06% of the investor class are currently “out of the money.” This means that this cohort of ADA investors currently hold the coin at a price lower than their cost basis. Conversely, 1.36 million wallet addresses, which comprise 30.38% of all ADA holders, seem to be in profit.  Source: IntoTheBlock ADA Futures open interest falls Due to its price fall,…

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Filed under: News - @ June 16, 2024 8:20 am