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Cardano: Explaining if ADA is a must-watch for April

2min Read

April has always been a tricky month for ADA holders. Here’s a look at how ADA performed in April historically and what’s next.

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  • Historical data favored ADA’s increase if the market maintains its bullish condition.
  • Though active addresses decreased, sentiment around Cardano became positive.

Cardano [ADA] might have posted a 5.06% 30-day increase but as April nears ADA holders should tread carefully. History showed that the month might not be kind to the token.

According to historical data from CryptoRank, ADA experienced a 16.10% decrease last April. In 2022, it was not good either as the price nosedived by 32.20% within 30 days.

Cardano's price performance from 2021 to 2023

Source: CryptoRank

However, it might be hasty to judge the token’s potential performance by taking data from the last two years alone. Moreover, April 2022 was when most cryptos in the market crashed.

Bygones may not be bygones

In the same month in 2023, altcoins like Cardano were not completely out of the depression phase. However, 2021 was different as the price of the token gained 13.7%.

But there was a difference considering that the market was in a bull cycle at that time. This year, many altcoins have gained incredible numbers. However, ADA was one of the top 10 tokens that was struggling.

As of this writing, ADA changed hands at $0.65. On a Year-To-Date (YTD) basis, this was a 4.48% increase.  For many market participants, the current phase of the market marks the start of the bull cycle. So, will Cardano choose to repeat 2021 over the subsequent years?

According to AMBCrypto’s on-chain analysis, active addresses when Q2 2021 began were in the hundreds of thousands.  In 2022, it was a similar case. However, 2023 was a little lower than the other two.

Cardano showing signals that the price might decrease

Soruce: Santiment

At press time, 24-hour active addresses on the network were much less. The decrease in active addresses implied that demand for ADA was unimpressive. Should the metric decline for most of next month, the price of the token might slide further.

However, if there is an uptick in activity, ADA’s price might defy what happened last year. Should this be the case, the value might rally toward $0.79.

The price prediction depends

Meanwhile, dormant circulation on the network climbed as high as 1.69 billion on the 21st of March. The increase suggested that old coins moved from where they were stored.

But that has changed as on-chain data showed that circulation had decreased. If old ADA holders decide to stay low-key next month, then the chances of an ADA rally might increase.

Positive sentiment around Cardano and falling ADA circulation

Source: Santiment


Read Cardano’s [ADA] Price Prediction 2024-2025


However, if there are many instances where dormant circulation spikes, then the price of the token might move sideways. A bullish case for ADA could be $0.70.

On the other hand, a highly bearish scenario could see the price of the token tank below $0.60. In the meantime, the Weighted Sentiment around Cardano had risen to the positive region, indicating that participants were bullish on the project.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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