Cardano (ADA) enjoyed euphoria for most of 2021. In fact, the hype surrounding smart contracts has caused it to rise 185% in 2 months, marking a new all-time high (ATH). However, this month was particularly disappointing for investors.
The tight consolidation that began on September 20th doesn’t seem to be over yet. For over a month, ADA has set $ 2.28 and $ 2.07 as strong support and resistance levels, respectively.
The fear is not just about consolidation, but also about the price falling. While ADA tested resistance regularly earlier this month, support was tested twice as often as resistance in the second half of October.
ADA price promotion | Source: TradingView
We can observe that the decline this time has lost more than 15% of all previously profitable Cardano addresses in profitability this month alone.
Investors have almost completely stopped moving their ADA holdings due to this immobility, and as a result, on-chain transactions have decreased significantly. In fact, the number of transactions hasn’t been that low since April 2020, when Cardano was just gaining traction.
Number of Cardano transactions | Source: Intotheblock
Even whales and larger investors have paused as their trading volume is at its lowest level in nearly 11 months, below $ 400 million.
Cardano’s enormous transaction volume | Source: Intotheblock
Cardano not only lost profits, but investors as well. Although there are currently more than 17 million addresses, only 17k of them are active on the network. Even when it crashed in May, it didn’t go below 45k.
However, the correlation of ADA with BTC is currently worse at -0.31. If that level sustains, even the potential future rally in Bitcoin will not be able to revive ADA.
Cardano’s correlation with Bitcoin | Source: Intotheblock
The good news, however, is that the network is seeing growing interest from developers as the number of Plutus-based smart contracts has increased 170% this week.
At the moment it’s hard to say what could help Cardano recover as the results of the hype from the Cardano summit were rather disappointing.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Teacher
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.
Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…
Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…
Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
This website uses cookies.