Cardano’s price has been on a downward trend since September, when its price peaked at $3.101. After entering a symmetrical triangle around mid-September, it went below the lower support line by mid-October to cement its extended downtrend. ADA briefly consolidated and even registered a couple of long green candles before reverting back to a downward spiral. By the time of writing, it remains on the same downward trajectory.
Increasingly, ADA has become more vulnerable to the broader market dynamics. It has joined the league of coins that are most influenced and swayed by Bitcoin’s price movements. ADA’s correlation with Bitcoin continues to inch up and now stands at almost one from zero not long ago. This means that Cardano is likely the trend set by the broader market led by Bitcoin.
How do the prospects look?
At the time of writing, the prospects for Cardano don’t look positive. The average HODLer balance, for example, has shrunk by more than half since October. This indicates the presence of macro sell pressure. The short-term prospects are no different either. In the last 12 hours, we have witnessed far more tokens sold than the ones bought by a variance of 8 million.
A sustained sell-side pressure means there is little hope for Cardano to tackle the bears. This is compounded by the coin’s weak social appeal at the moment. More often price peaks coincide with high social dominance for this alt. Social dominance is associated with increased mentions of the altcoin online on crypto-related social media.
Crowd euphoria coupled with a buy-side rally is the only way to negate the losses incurred thus far. Until that time, Cardano’s odds of recovering are low.