- ADA is very undervalued due to high selling pressure.
- Reversal could be possible after the exhaustion of sellers.
- The whole crypto industry is battling low trading volumes.
The whole crypto industry is facing the consequences of the ongoing crypto winter, Terra ecosystem collapse, and FTX saga, which caused a drought-like situation in volumes. Minimum investing and trading players are on the field right now, which is not good for the industry. Every coin and every token suffers from the same problem; let us consider Cardano ADA, for example, as it is in a very complicated state in the cryptocurrency market.
ADA failed to gain any traction from institutional investors in the last two years, and no positive signs are visible on the horizon. Two years worth of selling Cardano has made it criminally underrated compared to its peers, such as Ethereum and Solana. Does this mean that Cardano could rally in 2023?
Crypto analytics platform Santiment has tried to shed some light on the situation; they say that now the sellers seem exhausted. With every downward movement, fewer coins are at a loss here, meaning a decrease in selling power on the network.
Possible Trend Reversal Ahead
It is known as the downtrend in trading volumes. One of the biggest factors affecting the industry, and when this happens for a longer period, bulls or bears gradually lose their momentum, and a trend reversal occurs.
This could be possible in Cardano’s case if there is a general recovery in the crypto market. However, the analysis could not confidently forecast ADA movement in 2023 based on limited indicators.
Unfortunately, Cardano’s bounce back is less likely as it has dropped to a local low again, though it gained a 7% price increase in the last four days and couldn’t continue the momentum.
Cardano ADA is trading at $0.0245, dropping 2.59% in the last 24 hours. The current price is 92.08% down from its all-time high of $3.10 achieved on September 2, 2021, and 1314.51% up from its all-time low of $0.01735 touched on October 1, 2017. Its market dominance is 1.06%, while its rank is 9. ROI is at 1032.43%, its volume dropped by 1.31% at $203 million, and the market cap dropped by 2.61% at $8.4 billion.
The chart shows a downward trend; prices were in the zone of 0.6033 to 0.4072 from late May 2022 to mid-October 2022, giving a southward breakout to its current point. From here on, it might go to 0.1967, where it shall consolidate for a while. If the bear market trend continues, it will find support at 0.0740.
If the price goes up and breaks the 0.4072 points, it shall consolidate between this and resistance at 0.6033 for a while. There are limited possibilities for a solid breakthrough in the near future, citing the current situation of the crypto industry.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/29/cardano-ada-awfully-underrated-santiment/