In this recovering market, every altcoin seems to be doing pretty well, including Cardano. However, even though it might be trending north over the last 24 hours or so, the bigger picture for this cryptocurrency might not change anytime soon.
Cardano in a rally, but not for long?
While the exchange and derivates front is doing well sitting in a bullish state, the on-chain performance is still pretty bearish. And, it could be this way for a while since Cardano fell by a massive 71.15% over the last 6 months.
Besides, this isn’t the first rally recorded by Cardano that could be invalidated. Just last week, ADA spiked by 12.49% before the rise was invalidated in the next 5 days.
With its recovery efforts getting delayed, already frustrated investors are now going to possibly lose all confidence in the altcoin. Currently, less than 10% of investors are in profit, with about 88% of them being at a loss.
Another reason behind their losses is that most of them, despite being a year old only, joined in due to Cardano’s hype of 2021. Fueled by the prospect of smart contracts, ADA managed to gain many investors. Thus, their losses at the moment make sense since ADA is already below its February 2021 levels.
In fact, the only active entities in the last month have been the whales. Throughout the month of February, these cohorts have conducted transactions worth $ 12 billion on average. Furthermore, the same peaked at $ 42.2 billion.
At press time, even though ADA had hiked up by 8%, there seemed to be no hope for any long-term, sustainable recovery. Especially given the extensive bearish pressure on the altcoin.
The full story is this…
Until January, at least Cardano’s Market value was positive. Since then, however, it has slipped below the neutral zone of 1 and is currently at 0.8. This cannot be revived by an 8% hike on the charts.
Finally, the Network value too has dropped significantly across the board.
Additionally, there is the small matter of the RSI and Squeeze Momentum indicators’ explicit bearishness. Looking at the same, it’s fair to argue that the latest hike might meet the same fate as its last few upticks.