Cardano (ADA) appears to be suffering more from a bear market than some of its other major competitors, recent data shows.

The token is down 2.2% to $0.4845 in the past week, compared to steady gains in most of the other top 10 cryptocurrencies.

While the hype about the blockchain’s upcoming Vasil Hard Fork had sparked price hikes earlier this month, it now appears to have died down. ADA is trading down about 25% in June and is near its lowest level in 14 months.

ADA has also seen a significant drop in daily trading volumes, from a high of $2.4 billion earlier this month to about $700 million in the past two weeks.

But lower volumes could signal a sharp rally, especially if large whales begin to accumulate.

Cardano sees big drop in unique addresses, sentiment

Data from blockchain analytics firm Santiment showed that the number of unique addresses interacting on Cardano has fallen to its lowest point in a year amid dwindling sentiment.

Sentiment towards the blockchain has also fallen to its lowest level since February, the start of the Russia-Ukraine war. Cardano saw about 53,050 unique addresses in the chain Monday, and an average of 73,204 addresses in the past 30 days.

But while Cardano has seen a sharp drop in sentiment, most other altcoins have also suffered from similar weakness. A crypto rout this year has seen the top 10 altcoins lose between 50% and 80% of their value. ADA is down about 63%.

But lower prices and trading volumes could cause these altcoins, especially ADA, to rally sharply.

The case for an ADA rally

Lower trading volumes in ADA would result in large trades directly affecting the price. As such, large-scale purchases by Cardano whales could result in an immediate, upward reaction in ADA prices.

Given how much prices have fallen this year, ADA could pick up bargains at current levels, or even after a further decline.

Anticipation of the forthcoming Vasil Hard Fork, which is expected to be deployed in the second half of 2022, could also spark interest in Cardano.

With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can play him video games or watch Seinfeld reruns. You can reach him at [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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