Cardano Traders Look Forward To Seeing Breakout as Selling Pressure Retreats.
As stated by the most recent analytical post by Santiment on-chain metric provider, Cardano traders and investors are expecting a breakout from the coin that profited more than 50% of its value back in March.
In the last 24 hours, Cardano gained around 6% of its value, and traders pushed the 9th largest coin by market cap to a breakout. As said by the indicator by Santiment, the crowd is euphoric toward ADA. The metric usually measures the number of posts containing bullish hashtags or words on social media platforms like Twitter.
Initially, Cardano secured its place in the top 10 of the most oversized tokens and coins by the market capitalization, easily beating Avalanche in terms of capitalization with $32 billion against AVAX’s $21 billion. To be on the list of top 5 tokens and coins by capitalization, Cardano’s market cap needs to surpass $50 billion and move the current 5th biggest digital asset, the USD coin.
ADA technical analysis
While positive sentiment persists in the community, it must somehow be tied to the technical performance of the asset, which remained in a prolonged downtrend since reaching a new high back in the summer of 2021.
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As stated by the daily chart provided by TradingView. ADA successfully “survived” the selling pressure of bears that have followed general market tendencies. Cardano’s underlying coin dropped by 20% from the local high and then entered the consolidation channel instead of reaching a lower low, which would have shown a continuation of the downtrend.
At press time, ADA trades at $0.9 and moves in a short-term consolidation channel with its borders remaining at $0.95 and $0.92, respectively.
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