Every cryptocurrency, including Cardano, seems to be doing well in this rebounding market. Despite the fact that it has been heading north over the previous 24 hours or so, the larger picture for this cryptocurrency is unlikely to alter very soon.
Cardano is on a roll, but for how long?
While the exchange and derivatives markets are doing well and remain optimistic, on-chain performance remains gloomy. Cardano has dropped by 71.15 percent in the previous six months, thus this might remain the case for a long.
Furthermore, this is not Cardano’s first rise that may be invalidated. ADA increased by 12.49 percent only last week before being invalidated in the following 5 days.
With its recovery attempts being delayed, already dissatisfied investors may now lose all faith in the cryptocurrency. Currently, fewer than 10% of investors are profitable, with the other 88 percent losing money.
Another reason for their losses is that, although being just a year old, the majority of them joined owing of Cardano’s buzz of 2021. ADA attracted a large number of investors thanks to the promise of smart contracts. As a result, their current losses make sense given that ADA is already below its February 2021 levels.
In reality, the whales have been the only active entities in the previous month. During the month of February, these cohorts completed deals totalling an average of $12 billion. Furthermore, it reached a high of $42.2 billion.
Even though ADA had been raised by 8% at the time of publication, there seemed to be little chance for a long-term, sustainable recovery. Especially considering the altcoin’s widespread bearish pressure.
The complete tale is as follows…
Until January, the market value of Cardano was positive. However, it has now fallen below the neutral zone of 1 and is now at 0.8. This cannot be resurrected by an 8% increase in the stock market.
Finally, the value of the Network has declined dramatically across the board.
There’s also the issue of the RSI and Squeeze Momentum indicators’ clear bearishness. Looking at the same data, it’s reasonable to believe that the newest increase will suffer the same fate as the previous ones.
Community Reaction: I will continue to stake my ADA. Do you have any advice on where I can stake?
Negative Reaction: No one will buy ADA in the future. Maximum supply is also very high. If not burned out everyone will just give up on this. Increasingly the ADA is being rejected. Blockchain alone is not enough.