Cardano: “2X Bullish Rally” or Bearish Run? Exploring ADA’s Options
Contributor
- The current price of ADA is $0.4487, representing a 41% increase year-to-date.
- Despite the upgrades, ADA has faced the highest bear market sentiment in over a year.
Cardano [ADA] Recently, Bitcoin’s market price has seen a significant increase, rising 3.9% in the last 24 hours to reach a valuation of $0.4487 at press time. This increase has pushed the year-to-date gain to 41%.
This positive price movement was in stark contrast to the pervasive bear market sentiment among traders, reported Santiment, a leading cryptocurrency analytics firm. Cardano: “The Biggest Bear Market of the Year”
Investor sentiment towards ADA
Cardano has been widely “written off” by traders, and some have even suggested that contrarian investments – which go against market consensus – could yield significant returns.
The dichotomy between ADA’s performance in the market and traders’ sentiment has created a complicated scenario for its future.
The bearish sentiment on Cardano is particularly intriguing given the upcoming Chang hardfork, which will take place later this month.
Described by Cardano founder Charles Hoskinson as the most important update in the network’s history, this hardfork aims to introduce decentralized ownership as well as significant improvements in security and scalability.
Despite these technical advancements, they seem unable to excite or influence the market, as ADA remains outside the top 10 cryptocurrencies by market cap.
Whale interest and trading activity
The fluctuating whale interest and trading activity surrounding ADA have been an indication of this lack of enthusiasm.
Data from IntoTheBlock showed a decline in large transactions (over $100,000) from 6,71,000 at the beginning of the month to 5,15,000 at the time of writing.
Overall engagement by large investors has declined slightly, although some large players maintained their holdings.
Cardano and market sentiment
Santiment’s pessimistic tone was reflected in Coinglass’ open interest data.
Open interest volume has dropped by almost 30% despite a slight increase in ADA’s open interest.
Overall enthusiasm for investing has waned despite a growing interest in ADA.
Source: Coinglass
AskFX reported that the number of users who have adopted cryptocurrencies has increased by a staggering 80%.
Increased activity on Cardano DEXes .This increase could be a positive sign, suggesting that despite the market challenges and bearish sentiment, there is a keen interest and active participation in ADA’s DeFi capabilities.
Analysts have suggested that the asset could be set for a major rally on a technical level. Captain Faibik is a well-known crypto analyst who revealed that the asset broke a downtrend pattern, revealing:
“ADA has left the station.”
Faibik is added
Don’t miss the ride… “Expect a 2x bullish rally during the midterm elections, so don’t miss the ride
