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

• 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.

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.

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.

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.