Cardano (ADA), an alternative cryptocurrency, has recently been the subject of conflicting opinions while the cryptocurrency market is still in upheaval. In spite of a bullish indication from the Bid-Ask Volume Imbalance indicator, the bulk of on-chain indicators point to a negative trend for ADA.
Data from IntoTheBlock shows that four important variables portray a pretty bleak picture for ADA. Among these are the indicators for concentration, in-the-money status, net network growth, and large transactions. When the number of significant investors of ADA (sometimes referred to as “whales”) declines, it frequently denotes a negative trend as major holders reduce their holdings.
Similar to the last example, when the In the Money indicator declines, it suggests that fewer ADA addresses are making money off of their trades, indicating a negative mood.
The rise of new ADA addresses is tracked by the Net Network rise indicator, which has also been going lower, signalling a drop in network growth and likely bearishness. Additionally, a decline in significant transactions frequently denotes institutional investors’ lack of interest, another indication of a pessimistic trend.
Although it is currently positive, ADA’s Bid-Ask Volume Imbalance suggests that there may be significant buying pressure present. This indicator calculates the difference between the volume of ADA on the order book’s purchasing and selling sides. When this imbalance is favourable, it means that there is more demand to purchase ADA than to sell it, which can result in a price increase.
Cardano’s recent price behaviour, in spite of this optimistic indication, is consistent with the negative on-chain signs. According to TradingView data, the price of ADA has fallen by 7.30% over the last week and 9.68% over the previous month. With a daily trading volume of $194 million, the market capitalisation is now $12.75 billion.
