Sentiments are largely negative within the Cardano ecosystem, with selling emotions overriding the need for accumulation. ADA was last seen exchanging hands at $0.441, which is lower than the peak of $0.48, true as of May 4, 2024. The support level has now been set at $0.44. Cardano has shed a lot of weight as of press time. It lost almost 8% over the last three days. A descending triangle was observed; however, Cardano managed to break out of it on May 2, 2024.
What surprised the community the most was that the dip in the token value came despite a surge in the number of addresses by more than 15%.
Relative Strength Index, or RSI, is 38.14, and the Money Flow Index, or MFI, is 31.84. ADA is more likely to experience selling than accumulation from its holders. If there is any further selling, ADA will begin to move downward. The Weighted Sentiment was last seen at -0.74.
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A reason for the drop is yet to be determined, but it is safe to assume that the market is largely following the trend that BTC has set since its Halving event. If it is indeed a correction phase, then the community may soon begin accumulating ADA until there is a sufficient level of gain to take home. The 30-day moving average has revealed that traders have been more at a loss than gain.
The macro picture is not exactly optimistic, and Cardano can do little to navigate its way out of the situation. In the last 30 days, the token value has fallen to 27.68%; previously, it was around 30%. The only gain that features on the board for ADA is in the last 7 days, which is by 1.79%—the only green trade that traders and investors are looking at.
There is also a decline in the market cap and 24-hour volume by 2.54% and 18.815, respectively. The next estimate for Cardano is to linger around $0.45 for a while before aiming for $0.5. The predicted estimate is not entirely out of the picture, for it could still be achieved by the end of 2024. Cardano’s last milestone was that of 90 million transactions, demonstrating its thriving ecosystem. Cardano now houses 169 launched projects, with 1,357 projects in development.
The ecosystem now relies on the upcoming Ouroboros Genesis protocol upgrade, which forms an essential part of the Chang upgrade.
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A movement around $0.4402 is worrisome only if the selling continues. Traders could soon transition to the accumulation phase, thereby setting the stage for stability. ADA aims to make a breakthrough at $0.45 before eventually moving to $0.50 and $0.75. The milestone of $1 could be achieved by the end of 2025.
