has been declining on the charts lately, disrupting any potential recovery plans it might have had in place. And, this downturn is expected to have significant implications. Particularly as the number of active addresses has not seen any substantial movement over this period.s price trend on a daily timeframe chart revealed a significant recent drop. Specifically, on 2 August, ADA registered a sharp decline of 7.38%, followed by a brief bout of recovery on the charts.
Needless to say, the aforementioned price decline influenced the behavior of ADA’s short-moving average , with the same establishing itself as a stronger resistance level at around $0.4. The role of this moving average as resistance suggested that ADA will need to muster considerable buying pressure to break through this level and potentially initiate a trend reversal.Despite the altcoin’s slight recovery over the last few hours, it’s worth pointing out that the Relative Strength Index’s reading was close to 40 – An indication of bearish sentiment dominating ADA’s market.indicated a generally stagnant trend in user activity.
Interestingly, at the time of writing, there had been a significant drop in active addresses too, with the same falling to around 10,000.the volume was around $280 million towards the beginning of the month, the same surged to over $400 million as the price declined on 2 August. This volume trend and a stable number of active addresses suggest that ADA holders are in a holding pattern. They are neither panic selling in large numbers nor are new investors aggressively buying at lower prices.Simply put, investors may be possibly waiting for more definitive signs of either recovery or further decline from the altcoin.Adewale is a full-time journalist at AMBCrypto.