Connect with us
Active Currencies 14032
Market Cap $2,483,087,440,814.07
Bitcoin Share 50.67%
24h Market Cap Change $6.77
Altcoin

Cardano – Assessing how likely a recovery is

3min Read

ADA stood in a gruesome state as the token witnessed a significant drop over the last seven days. Will the bears give way to the bulls in the days to come?

Posted:
Avatar
Avatar
Posted:

Share this article

  • Cardano exchanged hands almost 22% lower over the last seven days
  • Furthermore, its development activity, volume, and weighted sentiment also painted a bearish picture 

Most cryptocurrencies have been the victim of some bearish price action over the last few days. However, the last seven days have been particularly difficult for Cardano [ADA]. As per data from CoinMarketCap, ADA was exchanging hands at $0.2738 at the time of writing.

What stood as an extreme concern was that ADA was trading 22.54% lower over the last seven days. To add to the bad news, a tweet from IntoTheBlock stated that as of 13 June, 90% of cryptocurrency holders held their tokens at a loss. Furthermore, 91.52% of ADA holders were Out of The Money.

An Out of the Money asset is one that would generate a loss if exercised. Furthermore, traders are less likely to exercise such a sale as it would fail to generate any value.

Realistic or not, here’s ADA market cap in BTC’s terms

Cause(s) for concern

To add to the list of sad news, data from the intelligence platform Santiment added to the list of concerning factors. ADA’s development activity witnessed some improvement at the beginning of June. However, the metric witnessed a decline post 9 June and stood at 17.84 at press time.

This indicated that developers weren’t actively contributing to the Cardano network. Furthermore, a look at the weighted sentiment also painted a gloomy picture for the altcoin. At the time of writing, ADA’s weighted sentiment stood at -2.493.

Adding to the bearish sentiment, ADA’s volume also witnessed a steep decline over the past few days. A price drop coupled with a drop in volume indicated that traders weren’t actively engaged in trading the altcoin.

Source: Santiment

Furthermore, a look at ADA’s indicators on the price chart didn’t show any indication of a change anytime soon. ADA’s Relative Strength Index (RSI) stood at 21.50. This was an indication of the ongoing selling pressure in the market. Furthermore, the Awesome Oscillator (AO) was also flashing red bars below the zero line.

Additionally, ADA’s Moving Average Convergence Divergence (MACD) also saw the MACD line (blue) moving below the signal line (red). The MACD indicator also showed no signs of a crossover which indicated that the bearish sentiment could last for the next few days.

Source: TradingView

A tiny ray of hope

Despite the bears blocking ADA’s way to the bulls, there was a tiny ray of hope. As per data from coinglass, at press time, ADA’s long/short ratio stood at 1.07. Additionally, 51.8% of holders held long positions whereas 48.2% held short positions.

How much are 1,10,100 ADAs worth today?

This indicated that a higher number of investors believed that ADA would bounce back to its bullish price action.

Source: coinglass

Furthermore, data from LunarCrush also stated that ADA ranked #1 in the top 10 trending searches on LunarCrush.

 

Previous:
Next:

Share

Avatar
Aashna is a News Editor at AMBCrypto and is particularly interested in the how and what of blockchain technology, along with its vast applications. A flair for the language and her inquisitive nature are factors that spike her interest in the cryptocurrency space.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.