- Short positions on ADA have increased significantly.
- Activity on the Cardano network has also decreased significantly.
Cardano (ADA) has been one of many coins that has underperformed over the past few weeks compared to other tokens.
This led to a surge in short positions on ADA. In the last 12 hours, ADA was the third most shorted token among all cryptocurrencies.
Source: X
ADA’s decline began after March 27 after testing the $0.6700 level. During this period, the price fell 35% and made several lower lows and highs, a sign of a downward trend.
Over the past few weeks, the ADA has shown no signs of a turnaround. The Chaikin Money Flow (CMF) indicator also fell significantly. A decline in CMF indicates a decline in inflows into ADA.
Additionally, ADA’s Relative Strength Index (RSI) has also fallen below 36, meaning that the bullish momentum surrounding ADA has substantially weakened.
increasing social activity
On the social side, things looked positive for the ADA. ADA’s social volume has remained consistent over the past month, indicating that the token is gaining popularity on social media platforms.
Weighted Sentiment toward the ADA also grew at press time, meaning that the number of positive comments about the ADA outnumbered negative comments.
ADA’s popularity on social media could play a key role in the likelihood of a price reversal in the future.
Source: Santiment
How is the ADA doing?
Looking at the token status, it appears that ADA’s speed has dropped substantially.
Surprisingly, despite the price drop, the number of ADA token holders continued to grow.
The growing number of ADA holders suggests that there may be retail interest in the ADA token, but it is not significant enough to drive the ADA price higher.
Source: Santiment
Read Cardano (ADA) Price Prediction for 2023-24
The Cardano protocol also did not work properly. Over the past month, the number of daily transactions on the network has decreased from 90,000 to 45,000.
Additionally, the number of daily active addresses on the network decreased significantly from 70,000 to 29,000 during the same period.
Source: Artemis