NAIROBI (CoinChapter.com) — Cardano (ADA) has faced considerable challenges recently, with its price dropping 14.6% over the past two weeks. Despite this downturn, Cardano remains one of the top 10 cryptocurrencies by market cap, signaling its resilience.
The prevailing bearish sentiment has led some in the crypto community to label Cardano a “dead coin.” However, a new perspective is emerging, suggesting that the ADA narrative might not be over.
Nick Black from the “Discover Crypto” YouTube channel recently projected a bullish future for Cardano. He argued that the coin could reach $5, supported by ongoing developmental activities and promising technical patterns.
The analyst highlighted Cardano’s strong performance in developmental activities, where it ranked third among all crypto projects last month. This vibrant activity suggests a thriving ecosystem, challenging the notion that Cardano is a “dead coin.”
ADA’s Mixed Trading Metrics
The analyst identified a key technical pattern known as the “Break a Block” on ADA’s monthly chart, supported by a bullish stochastic crossover. These indicators often precede substantial price movements, similar to those seen in Bitcoin before major bullish runs.
Additionally, the chart reveals Cardano’s MVRV (Market Value to Realized Value) Long/Short Difference has dropped to -9.726%, indicating that most ADA holders are currently at a loss. Such deeply negative MVRV levels are often associated with market bottoms, suggesting a potential rebound as selling pressure may be waning.
Data from Coinglass supports this. It shows Cardano’s Open Interest has surged by 31.01% to $243.05 million, reflecting rising speculative interest. The Relative Strength Index (RSI) sits at 39.82, placing ADA in oversold territory, which could further support a recovery.
However, the decrease in whale transactions—from nearly 9,000 on Aug. 5 to 3,590 as of now—adds complexity to the current sentiment around ADA, indicating mixed signals within the market.
Can Cardano Overcome Market Skepticism?
A recent analysis by Trend Rider highlights the current state of Cardano’s momentum. The analysis points out that ADA’s momentum isn’t what it was in 2021 when it reached $3, and while Bitcoin’s momentum has also cooled, it remains at levels comparable to previous highs.
This reduction in momentum has made ADA less volatile and more predictable, offering a potential advantage for traders looking to capitalize on smaller, more consistent movements.
Cardano (ADA) has faced a challenging market, currently trading at $0.336, down 1.18% for the day. However, technical indicators suggest a possible reversal. The daily chart shows a descending trendline, consistently acting as resistance, with ADA USD nearing a key support level at $0.282.
Fibonacci retracement levels indicate a potential recovery if ADA holds above the 0.236 level at $0.338. A breakout could push ADA toward the 0.618 level at $0.562 and possibly the 1.618 Fibonacci extension at $0.738, signaling a bullish reversal.
