- Cardano’s On-Chain Metrics came up with contradictory inferences about market sentiment.
- The price movement suggests that the bulls are not out of the woods yet.
Cardano [ADA] Since then, it has been losing its gains. It was currently trading at $0.585, which is a drop of 26.5%. AMBCrypto reported in a recent report that whales are endangered. offloading During the dip, they can use their ADA tokens.
It was a negative signal. Cardano should, ideally (for bulls), see an accumulation phase during its consolidation beneath the $0.6 mark. AMBCrypto examined some metrics to determine the current state of the ADA markets.
Understanding the contradictory signals
![ADA Santiment](https://fxruhanahmed.com/2/wp-content/uploads/2024/04/Is-Cardano-undervalued-What-different-metrics-suggest.png)
Source: Santiment
As we mentioned, ADA addresses have relinquished a portion of their holdings over the last month. The trend of the number wallets that held 1k-1,000,000 ADA is downward. In the second half of March, the mean coinage (90-days) was also falling rapidly.
In the last 2 weeks, however, this began to change. The accumulation of snow was evident. MVRV was in the negative zone as well. The MVRV ratio was also in negative territory.
The Network Value-Transactions ratio (NVT), is another metric that can be used to determine the network value of an asset. In the seven-day average simple moving of the NVT, it was noted that on April 6, the number rose to 162. It was nearly as high as the reading in May 2023, when it reached 185.
It was evident that ADA had been overvalued and this contradicted the findings of MVRV. We will need to find another way to solve the conflict since these metrics are at a deadlock.
The market mood
![ADA Social Metrics Santiment](https://fxruhanahmed.com/2/wp-content/uploads/2024/04/1712557690_960_Is-Cardano-undervalued-What-different-metrics-suggest.png)
![ADA Social Metrics Santiment](https://fxruhanahmed.com/2/wp-content/uploads/2024/04/1712557690_960_Is-Cardano-undervalued-What-different-metrics-suggest.png)
Source: Santiment
AMBCrypto examined social metrics, as well the price-action chart to better understand market participant positions. After the 24th April, the 7-day SMA for social dominance dropped rapidly.
It has been moving higher over the past few days. Since mid-March, social volumes have been steadily declining.
Similarly, the sentiment was also negatively skewed for the bulk of last month. The social media participants were also bearish. This coincided with the recent decline in ADA’s prices.
The technical analysis of the chart for 1 day showed that, in this timeframe, the market was just slightly bullish. A 1-day session has not yet closed below the $0.568 swing-low from late February.
Weekly chart showing strong bullishness. ADA has continued its upward movement after beating the low of $0.46 from April 2023 in December.
You can read more about it here Cardano’s [ADA] Price Prediction 2024-25
The RSI however was at 41, which denoted a bearish outlook. Fibonacci levels revealed that $0.525 was the Fibonacci level. next Support level could attract prices.
In contrast, since the beginning of February the OBV trend has consistently been upward. It was a positive sign that even the drop from $0.525 to $0.505 could be reversed, and that the markets might not fall into a downward trend.
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Source: ambcrypto.com