In the cryptocurrency market, Cardano is in a difficult situation. The asset was not supported by institutional investors in 2021 and has not been redeemed as of 2023.
Cardano’s severe undervaluation relative to Ethereum, Solana, and other rivals is the result of two years of intensive dumping. However, does this necessarily imply that the ADA will recover in 2023?
According to the insights blog post of the analytical platform, there are indications that sellers are growing fatigued. With each decline in ADA, there are fewer coins at a loss on the network, indicating a steadily diminishing selling power on the network.
In addition, the trade volume is declining, which is one of the biggest fading/reversal indications witnessed on the market. As a trend progresses, bulls and bears eventually lose strength, giving up impetus; at this point, a trend reversal occurs. This might be the case with Cardano in 2023, particularly if the cryptocurrency industry as whole recovers.
However, the whole research was based on a small number of variables that do not provide us with any basic information that would enable us to correctly predict the movement of ADA in 2023.
Unfortunately, Cardano does not seem to be ready for a rebound as it has once again plunged to a local low, failing to build momentum following a 7% price rise over the previous four days.
It is true that the asset’s trading volume is down, but this does not necessarily indicate that the trend is waning since it might be due to vacations on global financial markets. The trend will likely continue till January 5.