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ADA may be due for a trend reversal but these indicators may restrict a bull run 

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Cardano [ADA] has been a hot topic for a few weeks now especially after it rolled out the Vasil hard fork. However, the coin struggled to climb the ladder lately as it registered negative 13% growth in the last seven days. This was quite alarming for investors.

Interestingly, Input Output Global recently posted a tweet mentioning all the major developments that happened in the Cardano ecosystem in the last week. As per the tweet, ADA crossed more than 51 million transactions and the native token count exceeded 6.4 million. 

However, none of these reflected on ADA’s price chart as its performance still cast a negative shadow. At press time, ADA was trading at $0.365 with a market capitalization of more than $12.5 billion. Nonetheless, a look at ADA’s on chain metrics suggested that the investors might get happy soon, as a trend reversal could be in play. 

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Here’s AMBCrypto’s Price Prediction for Cardano (ADA) for 2023-24

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You can relax ADA traders 

Data from on-chain analytics platform, CryptoQuant’s revealed that Cardano’s Relative Strength Index (RSI) was in an oversold position, which was a massive bull signal, indicating a price surge in the days to come.

Not only this, but ADA’s Market Value to Realized Value (MVRV) ratio was also down considerably, which might indicate a possible market bottom. Interestingly, though ADA’s development activity witnessed a downfall last week, it managed to increase in the last few days — which was yet another positive indicator. 

Source: Santiment

However, all wasn’t sunshine and roses for ADA as both its social dominance and social volume decreased over the last week. This represented diminishing interest of the crypto community in the altcoin. Moreover, the Binance funding rate also followed a similar route and decreased, indicating less interest from the derivative market.

Source: Santiment

ADA, you alright there? 

A look at ADA’s daily chart unveiled a bearish picture as most metrics were against the possibility of a price surge. For instance, the Relative Strength Index (RSI) registered a slight uptick, but still stayed way below the neutral zone, at 24.67. The Awesome Oscillator (AO) flashed red bars below the zero line showing no signs of it turning green anytime soon. 

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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