Cardano has had a decent 2022, with the blockchain gaining nearly $200 million worth of TVL in a matter of weeks. In fact, network value is expected to increase further as new solutions and dApps decline.

Lots of releases on the way

From stablecoins and packaged BTCs to efficient DEXs and an increase in throughput – Cardano has a lot planned and planned to be released in the near future.

Cardano is also in a good place technically at the moment. The price just happens to be close to the July 2021 level. With these many products coming soon, these are very attractive levels.

It collapsed under a bearish triangle, reaching lows of $0.77 before recovering. As of going to press, it was trading below the same crucial support level that has now flipped to become a resistance level.

ADA/USDT | Source: TradingView

It will be difficult to break through this, but it seems the broader market positivity over the past two weeks has supported this. In addition, it has fallen not far from this feeding zone. If it can break through $1.2, things will look really good in terms of price action too.

In addition, ADA holders are also in a good position as they are quite profitable in their exposure to the altcoin. According to data from Santiment, the network’s realized gain/loss was around $146k at the time of writing – a very healthy sign, despite the 75% corrections it saw from its ATH.

Network Realized Profit/Loss | Source: Santiment

Social dominance for Cardano has also tried to recover from its lows in the past week and a half, suggesting more online chatter. This is very understandable thanks to the many announcements and product launches that are on the way to the coin.

Social dominance | Source: Santiment

Here’s a warning though

Not everything works in favor of the bulls. Contrary to most opinion, Santiment’s adjusted price-DAA divergence has been giving sell signals for the past few days, with the largest of recent times coming on April 3 itself.

This does bring with it a certain fear of short-term weakness.

Adjusted Price DAA Divergence | Source: Santiment

Overall, things seem to be looking pretty optimistic for Cardano. Unfortunately, thanks to the weakness following the massive crash since the ATH, minor corrections here and there can be expected.

However, these minor corrections most likely wouldn’t affect the bigger picture for Cardano.





This post cardano [ADA]: Assess whether recent sales signals can be a bummer

was published first on https://ambcrypto.com/cardano-ada-assessing-if-recent-sell-signals-might-play-spoilsport/

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