After surpassing $0.40 for the first time in 2023, the value of Cardano decreased by 22%.
Cardano surpassed $0.40 but has retraced 22% over the last two weeks. Social mood and recent purchasing habits of crypto whales indicate that investors may be preparing themselves for the subsequent surge.
Cardano surpassed $0.41 on February 16, a positive move that pushed its year-to-date gain beyond 67%. Nevertheless, on March 7, it had retraced 22% towards $0.32, precipitating a negative spiral in social feelings among network users.
Santiment, a blockchain analytics company, has found that Cardano mentions in mainstream crypto media have decreased dramatically over the last 30 days.
The graph below illustrates Cardano’s fall in social dominance from 1.4% on February 10 to 0.69% on March 8.
Social dominance measures the proportion of mentions of Cardano across influential social media networks. A fall in social power often suggests that most market players are now gloomy, which might encourage crypto investors to purchase the dip.
The recent increase in Development Activity on the Cardano network is another on-chain statistic that implies a possible positive price movement for ADA. Since February 1st, it has climbed by close to 40%.
The on-chain metric tracks code enhancements and other fundamental technical actions on the public repository of a project. A rise in development activity indicates the possibility of a fresh wave of demand owing to anticipated product enhancements, problem repairs, or new network capabilities.
The market-value-to-realized-value ratio gives price-related information. As illustrated here, most investors who purchased ADA in the previous 30 days are sitting on losses of about 16%. Now, several crypto investors may be afraid to record such substantial losses.
According to past trends, ADA seems to be on track to grow 20% to $0.37 before investors begin to record profits again. Following this, a protracted rise to the following key profit-taking zone is possible around $0.42.
Yet, if the $0.25 support fails to hold, there is a chance that Cardano will drop near the 35% loss line at $0.20.
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