- ADA’s price rose only by 6% in the last 30 days, despite the bullish market condition.
- Most market indicators looked bearish on the token.
Cardano [ADA] has been losing substantial amounts of market capitalization, which has pushed the token to the 9th spot on the top 10 list of cryptos. Though this looks bearish, ADA might have a trick up its sleeve that can result in a trend reversal.
Cardano’s market cap is dropping
An analysis of CoinMarketCap’s data revealed that while several cryptos registered remarkable growth last month, ADA was somewhat left behind. This was the case, as its price only moved up by 6% in the last 30 days.
At press time, Cardano was trading at $0.6328 with a market cap of over $22 billion, making it the 9th largest crypto.
The sluggish price action took a toll on its previously high market cap, suggesting that it might as well slip off the list of the top 10 cryptos by market cap. To better understand what to expect from the token, AMBCryptoi then checked ADA’s metrics.
Cardano to witness a trend reversal soon?
While ADA’s price action was not volatile, Cryptollica, a popular crypto analyst, recently posted a tweet highlighting an interesting incident. As per the tweet, Cardano’s price was in a somewhat consolidation phase and was about to break above a key resistance zone.
A similar trend was noticed back in 2020, after which the token’s price reached an all-time high. We then took a look at its on-chain metrics to better understand whether history would repeat itself.
Our analysis of Santiment’s data revealed that network activity around Cardano was high, as its daily active addresses were high. Another bullish signal was its MVRV ratio, which improved slightly over the last seven days.
Source: Santiment
However, investors must exercise caution as most market indicators looked bearish on the token. For instance, the MACD displayed a clear bearish upperhand in the market.
Cardano’s Relative Strength Index (RSI) was also resting under the neutral mark, indicating that the token’s value might drop in the coming days.
Nonetheless, ADA’s price rebounded after touching the lower limit of the Bollinger Bands, hinting at a possible bull rally during the coming days.
Source: TradingView
Read Cardano’s [ADA] Price Prediction 2024-25
Despite the Bollinger Bands suggesting a bull rally, market sentiment around the toke remained bearish. This was evident from the fact that Cardano’s weighted sentiment went into the negative zone.
But its social volume remained high, reflecting its popularity in the crypto space.
Source: Santiment
