In this recovering market, every altcoin seems to be doing quite well, including Cardano. While it may have been trending north in the past 24 hours, the bigger picture for this cryptocurrency may not be changing anytime soon.
Cardano in a rally, but not for long?
While the exchange and derivatives front is doing well in a bullish state, performance on the chain is still quite bearish. And it could be for a while yet, as Cardano is down a whopping 71.15% in the past 6 months.
In addition, this is not the first rally recorded by Cardano to be declared invalid. Last week, the ADA peaked at 12.49% before nullifying the rise over the next 5 days.
With recovery efforts slowing, already frustrated investors may now lose all faith in the altcoin. Currently, less than 10% of investors are making a profit, while about 88% of them are making a loss.
Another reason for their losses is that despite being only a year old, most of them still entered because of Cardano’s 2021 hype. Fueled by the prospect of smart contracts, ADA managed to land many investors. So their losses at this point make sense, as the ADA is already below the February 2021 level.
In fact, the only active entities in the past month have been the whales. During the month of February, these cohorts executed transactions worth an average of $12 billion. In addition, the same peaked at $42.2 billion.
At the time of writing, while the ADA was up 8%, there seemed to be no hope of a sustainable long-term recovery. Especially given the extensive bearish pressure on the altcoin.
The full story is this…
Until January, Cardano’s market value was positive. However, it has since moved below the neutral zone of 1 and currently stands at 0.8. This cannot be revived by an 8% rise in the charts.
Finally, the network value has also dropped significantly across the board.
In addition, there is the minor issue of the explicit bearishness of the RSI and Squeeze Momentum indicators. Looking at the same thing, it’s fair to argue that the latest rise could suffer the same fate as the last few rises.
This post Cardano: Up 8%, the full story behind ADA’s latest walk is…
was published first on https://ambcrypto.com/cardano-up-by-8-the-full-story-behind-adas-latest-hike-is/