Cardano’s volume has dropped significantly in the past few months as the bulls seem to have shifted their focus to other tokens. While the markets underwent a couple of bullish breakouts, the ADA price remained consolidated below $0.5. Furthermore, the ADA price dropped below $0.4 and is unable to reclaim the lost position. Now the question arises: whether the third-generation token has lost track. Will it ever respond positively to the upcoming bullish action?
The ADA price last surged just 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, which was completely squeezed out later. Since then, the token remained less influential from the ongoing market trend and refrained from reclaiming $1. This sluggish behaviour of the token may have irked the market participants, as the token has fallen heavily over the social media platforms.
The Reddit subscribers have been constantly decreasing, while the platform’s active users have now dropped below 100. Besides, a gradual decrease was also seen in the number of users in the crypto’s primary Telegram channel, indicating a huge disinterest. This may be one of the reasons that the active address count has plunged below the average.
The token is marking its 7th birthday today, which may or may not be a bullish signal for the token. Meanwhile, the technicals remain bearish as the RSI is undergoing a bearish reversal after hitting the upper threshold and the MACD displays a massive drop in the buying pressure, which may further lead to a bearish crossover. Moreover, one of the popular analysts, ALI, discovered a ‘sell signal’ flashing for the ADA price rally.
The TD sequential indicator is used to find the exact time of trend exhaustion and potential price reversals. Unfortunately, this has just turned bearish, flashing a sell signal and suggesting a potential short-term correction. Therefore, the ADA price could face a pullback below $0.38, which may certainly not be misinterpreted as a descending trend. The price in the long term has surged above the descending trend line, indicating the growing strength of the bulls.
The weekly chart of ADA price shows the token has breached the multi-year descending trend line. After remaining under extreme bearish influence, the MACD and the DMI are both about to undergo a bullish crossover. This may be some early signs of a potential rally, as the Cardano price hasn’t displayed any major move in the past 46 weeks after a surge from $0.28 to $0.78. Therefore, yet another $0.05 to $3.10-like rally is much awaited for the token in the coming days.
