Recent research indicates that Cardano (ADA) looks to be more affected by a bear market than some of its major competitors.
The token’s price has decreased by 2.2% over the previous week to $0.4845, but the majority of other top-10 cryptocurrencies have maintained stable growth.
The euphoria surrounding the imminent Vasil Hard Fork of the blockchain led to price increases earlier this month, but it now appears to have subsided. ADA is down almost 25 percent for the month of June and is near its lowest levels in 14 months.
ADA’s daily trading volume has also declined significantly, from a high of $2.4 billion earlier this month to approximately $700 million over the past two weeks.
However, smaller volumes could position the token for a strong rally, particularly if large whales begin to accumulate.
Cardano observes substantial reduction in unique addresses, emotion
Since the beginning of the Russia-Ukraine war in February, sentiment towards the blockchain has also plummeted. On Monday, around 53,050 unique addresses interacted on the Cardano blockchain, compared to an average of 73,204 addresses over the preceding 30 days.
However, while Cardano has had a severe decline in sentiment, the majority of altcoins have also experienced a comparable decline. The top ten altcoins have lost between 50 and 80 percent of their value this year due to a crypto-currency crash. ADA is down almost 63%.
But reduced prices and trade volumes could position these alternative cryptocurrencies, particularly ADA, for a strong rebound.
Argument for an ADA rally
Due to ADA’s low trading volume, any significant transactions would instantly affect the price. Therefore, large-scale purchases by Cardano whales could result in a quick price increase for ADA.
Given this year’s steep price declines, ADA could garner bargain-hunting interest at current levels, or even after additional declines.
The impending Vasil Hard Fork, which is scheduled to be implemented in the second half of 2022, may also stimulate interest in Cardano.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.