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Cardano Statistics Are Well and Good, but What About the ADA?


Last week, trading activity on the decentralized exchange (DEX) Cardano (ADA) increased significantly, demonstrating the growing attractiveness of cryptocurrencies among traders. Additionally, a similar pattern has been observed in the total locked value (TVL) across the Cardano network. At the time of writing, TVL’s value has reached an incredible $159.68 million, according to Artemis statistics.

Not only that, Cardano has seen a moderate increase in the number of daily transactions over the past few days. As indicated by the significant increase in the number of whale transactions, this surge in activity was mainly driven by whale traders. Furthermore, daily active addresses increased, indicating increased network activity.

While Cardano’s network data appears stable, ADA’s price performance is not. According to CoinMarketCap, the price of ADA has fallen by 3% in the last seven days. ADA is now trading at $0.358, with a market cap of over $12.4 billion.

Unfortunately, a closer look at the daily ADA chart suggests a grimmer prognosis. The ADA Money Flow Index (MFI) and Relative Strength Index (RSI) have fallen below the neutral zone. The Exponential Moving Average (EMA) band is also showing a bearish crossover, with the 55 day EMA crossing below the 20 day EMA. Furthermore, Bollinger Bands show that the ADA price is approaching the pressure zone.

When all these issues are considered together, investors should prepare themselves for more downward pressure on ADA prices. This sentiment is consistent with on-chain measurements as negative sentiment charts have been high over the last week. In addition, the MVRV ADA Ratio is quite low, increasing the possibility of further decline.

Additionally, Cardano’s development activity has decreased in the past week, indicating that engineers are devoting less time and effort to network upgrades. Nonetheless, several favorable indicators stand out. Notably, ADA demand in the futures market increased on May 26, as seen from the green Binance financing rate. Additionally, ADA speeds remain very high, indicating higher token usage in transactions over a period of time.

Although Cardano’s DEX volume, TVL, and network activity indicate a thriving ecosystem, ADA prices are declining. Technical signs and on-chain measurements point to a possible downside. Nonetheless, positive elements such as the increasing demand for the derivatives market and the high velocity of tokens provide a ray of light amidst the current market predicament.


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