Cardano (ADA), along with most other cryptocurrencies, has felt the sting of Bitcoin’s recent slump. ADA’s price dropped over 12% in the last week and 3% in the last day, currently trading around $0.57. This has led to bearish market sentiment, reflected in declining weighted sentiment on Santiment.
However, there’s a glimmer of hope for ADA bulls. Cardano Dapp Analyst points out that historically, ADA took 90 days to follow Bitcoin’s previous all-time high (ATH). With Bitcoin reaching a new ATH just days ago, a similar trend could see ADA initiate a bull run soon.
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On-chain metrics also offer some bullish signals. The MVRV ratio, currently at -23.6%, often precedes trend reversals. Additionally, the Network-to-Value (NVT) ratio suggests ADA might be undervalued, hinting at a potential price increase.
Despite these positive indicators, technical analysis paints a different picture. The MACD, MFI, and RSI all point towards a bearish market for ADA in the short term.
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In Conclusion, Cardano is currently caught in a tug-of-war between historical trends suggesting a future bull run and technical indicators portraying a bearish short-term outlook. Investors should closely monitor both on-chain metrics and technical analysis for a clearer picture of ADA’s price movement.