- Social media engagement and user activity have been falling in the past six weeks.
- The NVT and mean coin age metrics posed a dilemma to investors.
As an analyst with a background in analyzing cryptocurrency markets and trends, I’ve been closely monitoring Cardano (ADA) over the past few weeks. Based on my analysis of the available data, it appears that Cardano is currently facing some significant headwinds.
As a technical analyst, I’ve observed that Cardano [ADA] has been unable to break free from its bearish trend. The chart indicators suggest that the token may face more downward pressure in the near future.
A lack of demand was a major reason, and bullish sentiment has also been negligible.
The price of Bitcoin [BTC] failed to surpass the resistance levels at $60,800 and $63,300, while Cardano [ADA] remained trapped within the price range of $0.43 and $0.47. Based on on-chain data, does the market indicate a potential bullish reversal or further confirmation of bearish tendencies?
Development activity was high but the good news stops there
A robust level of development work indicates that the project is consistently addressing problems or readying to release fresh functionalities.
Overall, it is a good sign for long-term investors, and Cardano did not slouch in this department.
As an analyst, I’ve observed that while bitcoin’s price has continued its upward trend since mid-March, other related metrics such as daily active addresses and social media volume have shown a downward trend during the same period.
The network usage for transactions showed a decrease with fewer people engaging in transactions. Additionally, social media interactions have noticeably dwindled. Furthermore, the sentiment analysis, taking into account the significance of each comment, has revealed a predominantly negative trend over the past six weeks.
As a researcher examining the current online sentiment, I’ve noticed that the engagement has been less than favorable, even bordering on negative. This trend does raise concerns about the potential short-term price outlook. Nevertheless, it’s essential to remember that this single data point doesn’t definitively predict a price drop is imminent. Other factors should be considered as well before reaching any conclusions.
The contradicting signs — is ADA undervalued or not?
Since mid-March, the 30-day MVRV ratio has remained below zero, indicating that this asset has been significantly underpriced for a brief period.
As an analyst, I’ve observed an intriguing development where the price trend has taken a bearish turn. Simultaneously, there has been a notable surge in the mean coin age, indicating that coins have been accumulating at a fast pace.
Swing traders had a promising chance to purchase ADA as its price reached the lower end of the range. However, the NVT indicator suggested a different narrative.
As a crypto investor, I’ve noticed that the Network Value to Transactions (NVT) ratio, which is calculated based on daily circulation, has been on an upward trend since mid-March. In simpler terms, this means that the value of the cryptocurrency network has been growing faster than the number of transactions being processed on it. This could potentially indicate that the market is overvaluing certain cryptocurrencies, or that there’s increasing demand for using the network for various purposes. Regardless, it’s an interesting trend to keep an eye on.
The finding suggested that the network’s value seemed disproportionately high based on its limited capacity for token transactions. This bears negative consequences for current usage and could potentially impact future demand.
Read Cardano’s [ADA] Price Prediction 2024-25
Based on the available information and conducting my own technical analysis, it seemed that I should expect further declines for Cardano.
A Bitcoin breakout might halt or reverse the downtrend, but the evidence at hand was not bullish.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- TON PREDICTION. TON cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- HI PREDICTION. HI cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
2024-05-14 10:15