While the majority of crypto assets are preparing to reclaim the positions they held prior to the May 2022 crash, Cardano (ADA) is making new lows every day. Market trends and sentiments have only had a minor impact on the price, which remains bearish. After being rejected by the local resistance, the ADA price appears to be trapped in a bearish trap, raising the prospect of a retest of the lower support.
As mentioned in the above chart, the ADA price is on the verge to break the support at $0.39 which may fuel a price drop towards the last point of defence at $0.385. If the asset fails to sustain at these levels, a deep bearish trend may drag the price marking new yearly lows.
This is Why Cardano (ADA) Price May not Receive a Bullish Push?
Active Address Count Fails to Reach 100K
The Active address shows the user’s platform activity, such as buying, selling, or trading. A drop in the address indicates that traders’ interest in the asset has waned, causing the price to remain within consolidated ranges. Furthermore, the bulls have remained silent, preventing the price from receiving the required bullish push.
Social Dominance Plummet Significantly
The social dominance of an asset refers to market participants’ engagements on various social media platforms. This demonstrates the participants’ enthusiasm for the project and their belief in its future prospects. Regrettably, despite critical network upgrades, social dominance continues to decline. As a result, until market sentiments change, the ADA price may not receive the necessary attention to breaking through the bearish influence.
Whales Not Accumulating Cardano(ADA)
The crypto verse closely follows whale accumulation because it predicts the asset’s future price action. When the whales accumulate in large numbers, it is assumed that the price will soon begin a significant bullish trend. The graph is currently largely stagnant, implying that the whales have paused their accumulation while they await a change in the price trend as well as market sentiments.
NVT Ratio is on a Rise
The NVT ratio, or Network Value Transaction ratio, calculates the relationship between market capitalization and transaction volume. It is thought to be known whether the cryptocurrency is undervalued or overvalued. A rising NVT ratio indicates that the market is either optimistic about the asset or that the token is overvalued, and thus bearish.
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