Miami, FL – The market sentiment around Cardano (ADA) has been bearish, disappointing investors over the last few months after a major setback in April. Despite the negative trend, there are signs of hope for a potential recovery in the coming days as a bullish pattern emerges on the token’s daily chart.
In April, ADA experienced a significant drop in price, losing over 40% of its value on the 12th of that month. Since then, the token has struggled to recover from the setback, with more than 60% of investors currently at a loss, according to data from IntoTheBlock.
Although the weighted sentiment surrounding ADA has largely been negative, there has been a noticeable increase in social volume and discussions about the token since April.
Analyzing ADA’s on-chain metrics reveals a potential for recovery, with the MVRV ratio showing improvement in the weeks following the price crash. Additionally, ADA’s velocity has remained high, indicating increased usage in transactions within a specific timeframe.
Technical indicators on ADA’s daily chart suggest a possible bull rally, as the Chaikin Money Flow (CMF) has shown a promising uptick. However, the Relative Strength Index (RSI) has taken a different route, which may hinder ADA’s upward movement.
Looking ahead, if ADA can gain bullish momentum and surpass the $0.467 mark, it could potentially reach $0.5 as a crucial step towards complete recovery. Currently, ADA is trading at $0.4609 with a market capitalization exceeding $16 billion.
In conclusion, while there are signals of a potential recovery for ADA in the near future, it remains important to monitor key indicators and technical patterns to assess the token’s trajectory accurately.