Cardano
Cardano lags behind in market rally – Are ADA bulls asleep?
ADA has been sluggish when it comes to catching up with the crypto rally.
- ADA is underperforming compared to BTC and ETH in the current market rally.
- Trading volumes and liquidity are lagging behind other top cryptocurrencies.
As the crypto markets continues reeling from several bullish factors that have propelled prices upward, there has been a noticeable absence; Cardano [ADA].
Unlike its peers, ADA’s price charts isn’t bathed in green. The Ethereum [ETH] ETF hype, coupled up with the US House voting for a landmark crypto bill, has kickstarted a mini bull run.
ADA’s current market performance
Analyzing ADA’s monthly price
chart, we see that bulls might be currently in a phase of consolidation rather than being completely inactive. So the potential for a future bull run could still be forming.
At the time of writing, ADA was trading near $0.4836, closer to the upper middle of the recent range, showing some resilience after testing lower levels earlier in the month.
If ADA maintains support above the $0.43 level and breaks past resistance around $0.60, it might confirm a bullish trend. However, a failure to hold above these support levels could see ADA retesting lower support zones of $0.4 or even $0.38.
ADA remains resilient
Meanwhile, AMBCrypto’s analysis of Coinglass data showed that there has been a huge decrease in ADA’s trading volume by 21.54%. Typically, this means there’s been a reduction in active trading.
The long/short ratio across various platforms shows mixed sentiments. For instance, on Binance, the ratio for ADA/USDT is notably higher for longs (3.8287), indicating a bullish sentiment among top traders on this platform.
Source: Coinglass
In contrast, the overall market sentiment is more balanced, showing indecisiveness among the bulls and the bears. However, the relatively stable open interest reaffirms our analysis that the bulls might currently be in a phase of reassessment rather than retreat.
Source: Coinglass
There has been a noticeable amount of liquidation in the past 24 hours, with the majority on the short side, which means ADA’s plunge primarily affected short sellers.
Further cementing our analysis is the Cardano Fear and Greed Index which currently sits at 44%, indicating a neutral sentiment among investors.
Source: CFGI
Read Cardano (ADA) Price Prediction 2024-25
Unfortunately, social sentiment appears to be low, meaning there is reduced community engagement or negative discussions around ADA. Still, the altcoin’s market share remains stable relative to other cryptocurrencies.
All in all, the ADA bulls might just be taking a rest for now.
