Santiment has just shared an interesting Cardano chart that basically every ADA holder should take a look at. The data shows that Cardano’s normally optimistic retail crowd has turned bearish for the first time in months. What’s surprising is that this shift in sentiment hasn’t pulled the price down – instead, ADA has managed to gain about 5% while traders turned negative.
The chart tracks the ratio of bullish versus bearish commentary across social media. In early August, when greed was at its peak, the ratio spiked to an incredible 12.8:1. Back then, ADA’s price stalled and eventually corrected, showing how too much optimism can often be a warning sign.
By mid-August, things had flipped. The ratio dropped to 2:1 as fear crept in, and interestingly, ADA responded with a sharp rally. Now sentiment is even weaker, at just 1.5:1 – the most bearish reading in five months. And once again, the opposite is happening: ADA is pushing higher instead of collapsing.
This dynamic is something Santiment has highlighted repeatedly across different assets: crowd emotions often move in the wrong direction. When retail traders panic and sell off, larger investors tend to accumulate. That accumulation can then spark the very rallies that retail just sold themselves out of.
Source: X/@santimentfeed Why Negative Sentiment Can Be Bullish
It sounds counterintuitive, but bearish retail sentiment can be one of the strongest bullish signals. Markets are driven by liquidity, and when smaller traders exit their positions out of frustration, it creates supply that larger players are happy to buy. In other words, fear at the bottom often hands opportunities to whales and institutions.
For Cardano, this is particularly important. ADA has spent most of the past month trading between $0.80 and $0.87, and this frustrated short-term traders who expected a breakout. That frustration is now visible in the sentiment data. But the fact that ADA is holding its ground and even climbing slightly while sentiment collapses suggests strong underlying demand.
This isn’t the first time ADA has behaved this way. Back in previous cycles, Cardano often rallied hardest when its community was least confident. The mid-August example shown on the chart is just the latest case, where bearish commentary actually preceded a rally.
Santiment also pointed out that when greed dominated earlier in August, ADA corrected almost immediately. It’s a reminder that extreme optimism can be more dangerous than fear – and that retail traders usually get caught on the wrong side of the move.
Read also: Hedera (HBAR) vs Cardano (ADA): Which Crypto Looks Better to Buy Right Now?
What’s Next for ADA Price?
Right now, ADA is trading around $0.82. The key level to watch is still the $0.87–$0.90 range, which has acted as resistance multiple times over the past few weeks. A breakout above that could set up a push toward $1, a level that Cardano hasn’t managed to reclaim yet this year.
On the downside, if sentiment stays negative and retail continues to exit, ADA could retest $0.78 as short-term support. But given the current pattern, dips may just attract more accumulation from stronger hands.
Longer term, ADA still benefits from steady development, strong community engagement, and partnerships that keep it relevant in the blockchain space. As Santiment put it in their post: “When small traders sell off their bags out of impatience and frustration, it is generally the key stakeholders who accumulate and drive up prices again.”
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The post Cardano Community Turns Bearish, But Here’s Why ADA Isn’t in Trouble appeared first on CaptainAltcoin.
