Cardano’s Bull-Attracting Efforts Struggle Against Resilient ADA Bears
- Cardano’s efforts with the Voltaire era helped the altcoin see some recovery on its Total Value Locked and Long/Short Ratio front.
- At the time of writing, Cardano’s native token ADA didn’t exactly step up its game.
- ADA’s trading price and metrics have been bearish, despite some good news from the Cardano Foundation.
Cardano is a blockchain platform that has been making significant progress lately.
Its efforts with the Voltaire era, which is a period of development focused on governance and community participation, have helped the altcoin see some recovery on its Total Value Locked (TVL) and Long/Short Ratio front, which are important metrics for measuring its health and growth. However, as we step into a new month, the ecosystem had something more to offer to the community.
The Twitter handle, Cardano Feed, published Cardano’s daily digest on 1 May and stated some important updates about the ecosystem. Adding to the Voltaire development, the roadmap presented other important updates related to the ecosystem. For example, ADA has collaborated with a next-gen Web3 gaming platform DEADPXLZ to develop its initial game on the Paima Engine. This would be integrated with ADA, creating exciting new possibilities for developers and gamers alike.
In addition to this, the roundup also stated that the SummonsPlatform was launched on the Cardano mainnet. This would enable users to create and manage DAOs in a better way. This is a significant development that could lead to more decentralization and community participation on the Cardano platform, which is an important goal for the ecosystem.
With so much to offer, Cardano could be on a winning spree. However, at the time of writing, Cardano’s native token ADA didn’t exactly step up its game on the price and metrics front. This was because the token was exchanging hands at $0.3842 and stood in the red. The Relative Strength Index (RSI) also stood at 44.28 and didn’t show any signs of making a recovery in the days to come. This indicates that the market sentiment towards ADA is currently bearish.
Moreover, ADA’s Moving Average Convergence Divergence (MACD) indicator too witnessed a bearish crossover, which is a technical signal that suggests a potential trend reversal in the market. Although, at press time, the signal and MACD line stayed above the zero line, it was only a matter of time before the two lines make their way past to the other side of zero.
Data from the intelligence platform Santiment also seemed to be in support of the bears at the time of writing. Although ADA’s development activity did witness an uptrend over the last few days, at press time, it slipped. ADA’s development activity stood at 83.83, which was a drop from the chain’s development activity over the last few days. This suggests that there may be a slowdown in the development of the Cardano ecosystem, which could negatively affect ADA’s prospects in the short term.
Furthermore, a look at the number of holders also didn’t make a significant recovery at the time of writing and moved in a sideways direction. However, ADA did manage to maintain its social dominance despite a bearish outlook on most fronts. This means that there is still a strong community of users and developers who are interested in the Cardano ecosystem and its potential.
Furthermore, as per data from CoinMarketCap, ADA was trading 0.18% lower in the last 24 hours and 3.46% lower over the last seven days. Thus, ADA traders would have to tread slowly at least over the next few days as the market sentiment towards ADA is currently bearish.
However, despite ADA being controlled by the bears, the Cardano Foundation shared some good news with the community. As of 1 May, Cardano’s on-chain stats managed to show some growth. This could, thus, change the state of ADA but only if investors managed to garner some bullish momentum. In conclusion, although ADA is currently facing some bearish trends, there are still reasons to be optimistic about the future of the Cardano ecosystem and its potential for growth and development in the long term.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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