Cardano is showing mixed signals on technical indicators, not to mention on-chain data. Despite the bullish trends on the metrics, ADA has failed to gain significant price momentum. At the time of writing, ADA is trading around $0.34, experiencing a slight drop of 4% in the last 24 hours, leaving investors wondering whether it is the right time to buy or wait.
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Speaking of positive vibes, Cardano has received a strong vote of confidence from the crypto community. In a recent survey conducted by Weiss Crypto, ADA took the title of the best technology-driven altcoin, receiving over 76% of the votes. This shows that despite the price struggles, the community still believes in Cardano’s long-term potential.
Which #altcoin have the best technology?
-Weiss Crypto (@WeissCrypto) September 17, 2024
Signs of high chain
There is some hope for ADA holders based on on-chain data. Coinglass Reports that the Long/Short ratio of ADA is 1.0167, which means that traders are feeling quite bullish.
Futures open interest is up 3% over the past 24 hours and has been on an all-time high since early September 2024. These types of signals tend to mean that traders are holding onto their long positions, which can, by extension, create the environment for price increases.
For ADA, CoinCodex predicts a price increase of 16.53% and $0.405879 on October 19, 2024. On paper, these are quite optimistic projections; however, market sentiment and technical data overwhelmingly advise caution.
Price fights to gain steam
Despite the bullish on-chain data, ADA has failed to break out of its current range so far. Even with the optimism indicated by the Long/Short ratio and rising futures open interest, ADA’s price is stuck around $0.33. Further stagnation in this regard could be supported by the bearish sentiments present in the broader crypto market, which also impacts its short-term performance.
ADA has failed to break out of its current range despite the bullish on-chain statistics. The altcoin’s price remains stuck near $0.33, despite the hope shown by the long/short ratio and the growth in futures open interest. The bearish mood of the broader crypto market, which has depressed its short-term performance, may help explain this impasse.
Market sentiment cautiously neutral
The overall market sentiment remains neutral at 49, based on the Fear & Greed Index, which indicates caution. Where ADA’s price is said to rise in the coming weeks, most analysts still advise against buying the asset yet, as better bullish signs need to appear in the market first.
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The recent surge in whale activity may also play a role: On Sept. 17, these massive crypto hodlers moved 19.5 billion ADA tokens, worth about $6.48 billion, according to IntoTheBlock. Such large movements often signal upcoming price changes, and investors are watching closely.
ADA: Community Trust and Perspectives
With mixed technical indicators, the Cardano community is doing very well. Weiss Crypto research showing ADA outperforming Ethereum and Solana, among others, suggests that Cardano’s technological foundation is solid.
Finally, while on-chain metrics are bullish for Cardano, the overall market conditions are quite bleak. Its short-term movement is quite limited, although there is hope in the community that the altcoin will still be able to prove its worth as it climbs the altcoin ladder.
Featured image from Swyftx Learn, chart from TradingView
