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Cardano is showing mixed signals on technical indicators, not to mention on-chain data. Despite bullish trends in metrics, ADA has failed to gain significant price momentum. At the time of writing, ADA Bitcoin is trading at around $0.34, having seen a slight decline of 4% in the past 24 hours, leaving investors wondering whether this is the right time to buy or wait.
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In terms of positive sentiment, Cardano has received a strong vote of confidence from the crypto community. In a recent survey by Weiss Crypto, ADA won the title of the best technical altcoin, receiving over 76% of the votes. This shows that despite the price struggles, the community still believes in Cardano’s long-term potential.
any #alternative currency Do you have the best technology?
— Weiss Crypto (@WeissCrypto) September 17, 2024
Bullish signals on the chain
There is some hope for ADA holders based on on-chain data. Coinglass Reports The length-to-length ratio of ADA stock indicates 1.0167, which means that traders are feeling bullish.
Open interest on futures has risen 3% over the past 24 hours and has been rising since the beginning of September 2024. These types of signals tend to mean that traders are holding onto their long positions, which could then set the stage for higher prices.
For ADA, CoinCodex predicts a price increase of 16.53% and $0.405879 on October 19, 2024. On paper, this is a reasonable forecast. Optimistic expectationsHowever, market sentiment and technical indicators strongly advise caution.
Prices struggle to gain momentum
Despite the bullish on-chain data, ADA has not been able to break out of the current range yet. Even with the optimism indicated by the buy/sell ratio and the growth in open interest in futures, the price of ADA is stuck at around $0.33. Further stagnation in this sense could be supported by the bearish sentiment presented within the broader crypto market which is also affecting its short-term performance.
ADA has been unable to break out of its current range even with bullish on-chain statistics. The altcoin’s price remains stable near $0.33 even as hope is evident in the buy/sell ratio and open interest in futures increases. The bearish mood of the larger crypto market, which has led to its short-term underperformance, could help explain this stagnation.
Market sentiment cautiously neutral
Overall market sentiment remains neutral at 49, based on the Fear and Greed Index, indicating caution. While ADA price is said to rise in the coming weeks, most analysts still advise against buying the asset just yet as better bullish signals need to emerge in the market first.
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The recent surge in whale activity may also have played a role — on September 17, large cryptocurrency holders moved 19.5 billion ADA tokens, worth around $6.48 billion, according to IntoTheBlock. Such large moves often signal upcoming price changes, and investors are watching closely.
ADA: Community Trust and Expectations
With mixed technical indicators, the Cardano community is doing well. A Weiss Crypto survey showing ADA outperforming Ethereum and Solana, among others, suggests that Cardano’s technological foundation is solid.
Finally, while the on-chain metrics are positive for Cardano, the overall market conditions are very bleak. Its short-term movement is very limited while there is hope in the community that the altcoin will still be able to prove its worth as it makes its way up the altcoin ladder.
Featured image from Swyftx Learn, chart from TradingView