The price of Cardano has decreased by 3% over the last 24 hours, reflecting a cooling of the cryptocurrency market. This decrease occurred amid a slight reduction in overall trading activity, which has affected several major altcoins.
However, despite the downturn, on-chain data suggests a potential bullish reversal for the ADA token that may be on the horizon.
ADA is declining, but trader confidence indicates medium-term growth.
Investor sentiment towards ADA remains significantly optimistic. According to Santiment, the weighted sentiment of the token is 1.33 and is on an upward trend at the time of writing. This indicates that traders and investors in ADA are still confident in the token's medium-term prospects despite the price decline.
Weighted sentiment is an indicator that analyzes social networks and online platforms to determine the overall tone or sentiment (positive or negative) surrounding a cryptocurrency. When its value is negative, it indicates that the overall market sentiment towards the asset is bearish, with negative discussions and forecasts outweighing the positive ones.
On the other hand, when its value is positive, the market sentiment towards the asset is bullish, and traders take positions that will contribute to an increase in price.
Moreover, the realized profit/loss metric of the ADA network is decreasing, indicating that a significant portion of ADA holders are currently experiencing losses due to the price drop. Historically, when traders are at a loss, they tend to hold onto assets rather than sell, reducing overall selling pressure. Such behavior may lead to a recovery in the price of ADA, especially in combination with the aforementioned positive sentiment indicator.
ADA is targeting a breakout as bullish sentiment increases.
According to daily chart data, ADA has been fluctuating since May 10. Over the last three days, the altcoin has faced resistance at the $0.84 level and found support at the $0.76 level.
The current positive sentiment and reluctance to sell at a loss may lead to an increase in new demand for ADA, pushing its price above the resistance at $0.84 and reaching $0.92. However, if the ADA token continues its decline, the price may fall to $0.76, break this level, and decrease to $0.66.#BinanceSquare #Write2Earn #crypto #TradeStories #Binance $ADA