Cardano’s stats are well and good, but what about ADA?

• Whales actively traded ADA as its whale transaction count increased.
• Market indicators were bearish, but a few metrics were positive for ADA.

Cardano’s [ADA] DEX volume spiked considerably last week, reflecting its popularity among traders. Interestingly, a similar trend was also noted on its TVL front. At press time, its TVL value stood at $159.68 million, per data from Artemis. 

Source: Artemis

Not only that, but Cardano’s daily transaction count also increased slightly in the last few days. The whales were actively trading ADA, as evident from the relatively high whale transaction count. Daily active addresses also spiked last week, showing more network activity. 

Source: Santiment

Will this reflect on Cardano’s price chart? 

Though Cardano’s network stats looked robust, the same was not true for ADA’s price. According to CoinMarketCap, ADA’s price declined by 3% in the last seven days. At the time of writing, it was trading at $0.358, with a market capitalization of over $12.4 billion.

Unfortunately, a look at ADA’s daily chart hinted that things could get worse. 

Source: TradingView

For instance, ADA’s Money Flow Index (MFI) declined, while its Relative Strength Index (RSI) rested below the neutral zone. ADA’s Exponential Moving Average (EMA) Ribbon displayed a bearish crossover as the 55-day EMA flipped the 20-day EMA. Additionally, the Bollinger Bands revealed that ADA’s price was entering a squeeze zone.

All this, when combined, suggests that investors can expect ADA’s price to fall further. 

Metrics complement the indicators

Like the market indicators, some on-chain metrics also looked concerning for ADA. Market sentiment remained bullish, as the negative sentiment graph remained mostly high over the last seven days. The token’s MVRV Ratio was also substantially low, which increased the chances of a continued downtrend.

Realistic or not, here’s ADA market cap in BTC’s terms

Last week, Cardano’s development activity also declined. This indicated that developers were putting in less effort into improving the network.

Source: Santiment

Nonetheless, a few of the metrics were positive. For example, ADA’s demand in the derivatives market increased on 26 May, as its Binance funding rate turned green. Besides that, ADA’s velocity also remained pretty high, indicating that the token was used in transactions more often within a set time frame.