Once the third largest cryptocurrency by market capitalization, ADA’s recent performance turned out to be much lower than expected. By late November and 2021, the ADA market isn’t even showing positive signs.

Choose ADA or not?

ADA is the most unpredictable asset on the market right now as price movements, investor behavior, and network performance all indicate different signals.

First, the price failed to recover from the nearly a month of support at $ 1.90 and fell below 3 days ago (12.2% decline). ADA is currently trading at $ 1.66 – the August level, this also turns long-term support at the 200 simple moving average (orange SMA) into resistance, making ADA’s status an absolute reduction.

ADA price promotion | Source: TradingView

This is also reflected in the net asset flow. This week, ADA was the worst performer compared to other altcoins as outflows hit $ 2.1 million. These numbers show that, on average, over 100 million ADA were sold daily for the past 10 days.

Flow of assets | The source: CoinShares

The interesting thing is that given the current price situation, many think that investors will rush out of the market. However, both the number of active addresses and the number of transactions reached all-time highs yesterday, and the total number of addresses also remained unchanged.

Number of ADA transactions | The source: In the block

At the same time, the trading volume showed no abnormalities. Instead, ADA’s correlation with Bitcoin rose to 0.88 and developer activity rebounded after falling to a 3-year low.

ADA development activities | The source: mood

However, investing in ADA is not currently profitable as the risk-adjusted return is -2.63. Additionally, Israeli stock exchange eToro recently announced its decision to remove ADA from its list at the end of the year, citing regulatory concerns.

Risk-Adjusted Bitcoin Returns | The source: Messari

Even so, investors remain bullish and ADA is sticking to social metrics.

With these mixed signals, nothing can be said at the moment. Any new investor can suffer a loss as 55% of all investors lose money. Hence, for now, the only entry point will be when ADA really rebounds and climbs back above $ 1.90. Once it’s backed up and tested as support, you should consider investing in ADA.

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Minh Anh

According to AMBCrypto

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