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Cardano loses New Year gains – What next for ADA?

2min Read

Cardano witnessed a significant sell-off as ADA prices declined with the general market. 

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  • Cardano’s funding rate has been reduced to its lowest in weeks.
  • ADA returns to the $0.5 price range after a significant decline.

Just four days into the year, Cardano [ADA] experienced volatile price fluctuations on two days. Has this price movement been sufficient to shift sentiment from positive to negative?

Cardano suffers more setbacks in price trends

Cardano had a promising start to 2024, with a more than 5% surge on 1st January, reaching a trading value of over $0.6. However, this gain was quickly lost in the subsequent days.

A detailed analysis of the daily timeframe chart revealed a loss of over 2.9% on 2nd January and nearly 8% on 3rd January. The setback on 2nd January was attributed to the recent overall market decline. 

ADA/USD price trend

Source: Trading View

The Moving Average Convergence Divergence (MACD) indicated a bear trend for ADA, consistently below zero. Meanwhile, the Relative Strength Index (RSI) initially remained above the neutral line.

However, with the recent decline in price, both the RSI and MACD now indicate a bearish trend. At the time of this update, the RSI had dipped below the neutral line, albeit marginally.

Additionally, ADA was trading around $0.56, reflecting a modest 1.6% increase.

Cardano volume shows sell-off

An examination of the volume chart on Santiment showed significant activity amid the price fluctuations. Around 1st January, the volume was around $400 million, rising to over $1 billion by 3rd January.

As of the latest update, the volume has reached almost $1.2 billion. 

Cardano volume

Source: Santiment

The volume trend indicates a notable increase in ADA sales over the last two days, suggesting a sell-off. This conclusion is drawn from the correlation between the direction of the price and the increasing volume.

If the price had risen with the volume, it would have signaled an accumulation trend instead.

Breaks pump on positive ADA sentiments

An analysis of the Cardano funding rate showed that, despite price fluctuations, it has consistently remained positive.

On 2nd January, the funding rate on Coinglass was around 0.07%. This signified that most traders were optimistic about a potential price increase despite the ongoing decline.

Cardano funding rate

Source: Coinglass

How much are 1,10,100 ADAs worth today

However, the substantial price decrease impacted this sentiment, leading to a decline in the funding rate to around 0.03% on 3rd January.

As of the latest update, the funding rate has further decreased to about 0.009%. This suggests that while a positive sentiment persists, there has been a noticeable reduction in optimism among traders.


Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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