The popular Altcoin Cardano closed in June with a 16% price drop, extending the months-long downward trend. This decline occurred despite major ecological milestones recorded that month.
With less bullishness still coming in as July begins, Ada could face even more negative side pressure in the short term.
It’s a big month for Cardano, but bad results for Ada
On June 14th, Cardano founder Charles Hoskinson announced plans for the network for full integration with the XRP ecosystem. This is an interoperability step aimed at enhancing cross-chain fluidity.
Later that month, on June 25th, Cryptocurrency Exchange Coinbase announced CBADA, which was announced. The move is designed to allow ADA owners to participate in distributed applications (DAPPs) within the Coinbase ecosystem while still connected to Cardano.
However, despite these developments, the ADA’s price performance remains poor. Coinglass data shows that Coin has recorded consistent weekly outflows from the spot market since February, indicating sustained sales pressure and declining investors’ profits.
In June, weekly outflows from the ADA spot market totaled $182.1 million as demand for altcoins tanked. When assets record such a steady spot outflow, traders and investors are withdrawing their assets because they are not confident in short-term price growth.
With active participation in the market and fewer sales with continued selling exceeding demand, the ADA will struggle to find strong support, increasing the chances of further price drops in July.
Furthermore, on-chain data shows that ADA supply rates in profits continue to decline. At the time of press, it was 45.97%, a 27% drop in the past month.
This metric serves as a proxy for market sentiment. If there are fewer owners, convictions between bulls are usually weaker, leading to aggressive purchases and additional downside risks.
As sellers control, Ada struggles
On the daily charts, ADA’s Elder-Ray index confirms the market’s bearish strength. The momentum indicator has consistently printed red bars since June 12th, indicating strong seller domination. At press time, the ADA’s Elder -Ray index is -0.0204.
If the seller remains in control, it could cause a price drop to $0.52.
However, if sentiment changes and new developments within Cardano ultimately renew demand, the price could rise to $0.59 as July progresses. A break above this resistance level could drive Cardano’s price to $0.64.
Disclaimer
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