- Market sentiment around ADA continued to remain bearish.
Apart from a bull pattern, a few of the metrics hinted at a price uptick
As a seasoned crypto investor, I have seen my fair share of market ups and downs. The past few months have been particularly challenging for Cardano (ADA) investors as the token experienced a significant price drop in April, shedding over 40% of its value. This setback left more than 60% of investors in the red, resulting in a surge in social volume and negative sentiment around ADA.
Over the past few months, Cardano‘s [ADA] investors have experienced disappointment as the token endured a significant downturn in April. Yet, promising signs emerged for potential reversal, with a bullish trend starting to take shape on the token’s daily price chart.
Cardano’s bloodbath
In April, the token experienced a significant setback. On the twelfth of that month, its value took a nosedive, resulting in a loss exceeding 40%.
After that disappointing event, the value of the token has yet to bounce back significantly. According to AMBCrypto’s analysis of IntoTheBlock’s figures, over 60% of investors have run out of profits, indicating that they are currently in the red.
I’ve noticed an intriguing trend as the price of ADA experienced a significant drop. The buzz surrounding this cryptocurrency has noticeably increased, as indicated by the substantial surge in social media mentions since April.
The token’s sentiment was predominantly negative, indicating a prevalence of pessimistic views among investors.
The token’s daily price chart indicated potential for a rebound in the near future based on the appearance of a bullish falling wedge formation. After experiencing a decline, the token has been trading within this pattern, showing signs of consolidation.
As of now, the market trend was on the verge of breaking free from its current pattern, potentially leading to a robust comeback in the near future.
Is Cardano’s recovery possible?
As a crypto investor, I closely examined ADA‘s on-chain metrics with AMBCrypto to assess if there were any signs of a potential recovery. Surprisingly, we noticed that the token’s MVRV (Market Value to Realized Value) ratio took a significant dive following the price crash. This indicator suggests that a large number of ADA holders may have incurred losses on their investments and could potentially be looking to sell, which might add further downward pressure on the price. However, it’s important to note that this is just one metric among many, and additional analysis and context are necessary before making any investment decisions.
Over the next several weeks, the metric showed signs of improvement, suggesting a possible market surge for ADA in the near future. Furthermore, its velocity remained robust.
This meant that ADA was more often used in transactions within a set timeframe.
Based on the encouraging trend in metrics, AMBCrypto examined Cardano’s daily chart to determine if technical signals supported an impending bull run. Notably, we observed a noteworthy rise in the Chaikin Money Flow (CMF).
As a researcher studying the price trends of ADA, I’ve observed that the market conditions suggest a strong possibility for an increase in prices. However, I’ve noticed an unexpected behavior from the Relative Strength Index (RSI) indicator, which seems to be opposing this trend.
Should ADA experience a bullish price trend in the near future, surpassing the $0.467 mark becomes essential to avoid a significant increase in liquidations.
Realistic or not, here’s ADA’s market cap in BTC terms
A hike in liquidation often results in price corrections.
If ADA manages to surpass its current price point and reach $0.5 during trade, it could mark the beginning of a full recovery for this cryptocurrency, given its present value is at $0.4609 and boasts a market cap above $16 billion as of now.
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2024-05-27 22:15