Is Cardano back on the path it trode in 2019?
- ADA was down by more than 14% over the last month.
- Metrics and market indicators suggested less volatility in ADA’s price.
Cardano’s [ADA] price has failed to move up of late, part of which could be attributed to the bearish market condition. However, there might be more to the story, as ADA was repeating a behavior that it showed a few years ago.
Read Cardano’s [ADA] Price Prediction 2023-24
Benjamin Cowen, founder of Into The Cryptoverse, pointed out an interesting development that resembled ADA’s price action back in 2019, ahead of Bitcoin’s [BTC] last halving.
Cardano is repeating its actions
Over the past few months, Cardano, like most cryptos, has witnessed multiple price corrections. According to CoinMarketCap, ADA’s price had dropped by more than 14% in the last 30 days. At press time, it was trading at $0.2592 with a market capitalization of over $9 billion.
Interestingly, Benjamin Cowen pointed out that the probability of ADA entering a depression phase was high.
Good chance #ADA is about to enter the depression phase.
Remember, last cycle, #ADA bottomed only 2 months before the halving.
It also spent the second half of 2019 going down (even before the pandemic) pic.twitter.com/SL4CWQPmue
— Benjamin Cowen (@intocryptoverse) August 26, 2023
This seemed likely to happen as there were similarities in ADA’s price action when it bottomed only two months before Bitcoin’s last halving. The token’s price remained low during the second half of 2019.
Interestingly, soon after the BTC halving, which happened on 11 May 2020, ADA’s price skyrocketed. Now, as we approach BTC’s next halving, which is scheduled to happen in 2024, history might repeat itself.
If that’s the case, then certain developments have also happened in the Cardano ecosystem over the last few months, which could support the next bull run.
For example, the blockchain’s development activity remained high as it released its Mithril mainnet upgrade a few weeks ago. Not only that, but Input Output Global recently also posted its weekly development report, highlighting the efforts made by developers in the last seven days.
Another week, another #Cardano development update, now live on #EssentialCardano. Check this week’s highlights and get the latest on core technology, wallets and services, smart contracts, and scaling and governance developments. https://t.co/7fgw2QhAhA
— Input Output (@InputOutputHK) August 25, 2023
Anything in store in the short term?
A look at Santiment’s chart revealed that whale activity around the token was high. Its daily active addresses also remained relatively high, suggesting good network health. However, the recent price correction pushed ADA’s MVRV Ratio down, which was bearish.
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ADA’s daily chart suggested that investors should not expect much volatility in the near term. ADA’s Relative Strength Index (RSI) and Money Flow Index (MFI) both took sideways paths under the neutral mark, hinting at sluggish price action.
However, the MACD displayed the possibility of a bullish crossover, which can change the scenario. Additionally, Cardano’s Open Interest also dropped, increasing the chances of a trend reversal.