Cardano’s trading volume has declined significantly over the past few months as bulls seem to shift their attention to other coins. While the market has seen several bullish breakouts, the ADA price has been consolidating below $0.5. Moreover, the ADA price dropped below $0.4 and could not reclaim the lost ground. Now a question arises: has the third-generation coin already lost its way. Will it react positively to the upcoming bullish move?
The last time the ADA price surged was before the first phase of the 2021 bull run, at the end of Q4 2020. The price surged from levels around $0.1 to as high as $3.10 before being completely squeezed out. Since then, the coin has had less influence on the ongoing market trends and has not reclaimed $1. This lackluster behavior of the coin may have angered market participants as the coin fell sharply on the social media platform.
Reddit has been seeing a steady decline in subscribers, while the platform’s active users have now dropped below 100. Additionally, the number of users on major cryptocurrency Telegram channels has also been gradually decreasing, indicating little interest. This could be one of the reasons why the number of active addresses has fallen below average.
Today marks the coin’s 7th birthday, which may or may not be a bullish sign for the coin. Meanwhile, the technical picture remains bearish as the RSI is experiencing a bearish reversal after hitting its upper boundary and the MACD shows a significant drop in buying pressure, which could further lead to a bearish crossover. Additionally, a popular analyst, ALI, has found a flashing “sell signal” in the rising ADA price.
The TD Sequential indicator is used to find the exact time of trend exhaustion and potential price reversals. Unfortunately, it has just turned bearish, giving a sell signal and suggesting a possible short-term correction. As a result, the ADA price could pullback below $0.38, which certainly cannot be misunderstood as a downtrend. In the long term, the price has surged above the downtrend line, suggesting that the bulls are gaining strength.
The weekly chart for ADA price shows that the coin has broken out of a multi-year descending trendline. Both the MACD and DMI are about to experience a bullish crossover after experiencing extremely bearish effects. This could be some early signs of a potential rebound as Cardano price has not seen any significant movement in the past 46 weeks after surging from $0.28 to $0.78. Therefore, expect the coin to see another rally from $0.05 to $3.10 in the coming days.
