Despite Cardano’s price increase and upcoming technical upgrades, it is still facing bearish sentiment.
- ADA’s price has risen to $0.4487, marking a 41% increase year-to-date. Despite upgrades, ADA faced the highest level of market bearishness in over a year.
Cardano [ADA] recently showcased a notable increase in its market price, climbing by 3.9% over the last 24 hours to a press time valuation of $0.4487. This surge has propelled the year-to-date gain to roughly 41%.
However, this positive price movement contrasted sharply with a pervasive bearish sentiment among traders, as reported by leading cryptocurrency analytics firm Santiment.
Cardano: ‘Most bearishness over the year’
Despite the optimistic price performance, Santiment’s analysis indicated that ADA was experiencing its highest level of bearishness in over a year at press time.
Traders have largely “written off” Cardano, even proposing that contrarian investments—going against the general market consensus—might yield significant returns.
This dichotomy between ADA’s market performance and trader sentiment has set a complex stage for its immediate future.
The bearish sentiment towards Cardano is particularly intriguing, given the imminent Chang hard fork, anticipated later this month.
Touted by Cardano’s founder Charles Hoskinson as the most significant update in the network’s history, this hard fork aims to introduce decentralized ownership and substantial improvements in scalability and security.
However, despite these promising technical advancements, they have seemingly failed to excite the market or influence ADA’s position, which remains outside the top 10 cryptocurrencies by market capitalization.
How far does this bearish sentiment go?
This lack of enthusiasm was visible in the fluctuating whale interest and the trading activities surrounding ADA.
Data from IntoTheBlock revealed a decline in large transactions (over $100k), dropping from 6.71k earlier in the month to 5.15k as of the time of writing.
This suggested that while some large-scale investors were maintaining their stake, the overall big-player engagement tapered off slightly.
Source: IntoTheBlock
Moreover, Open Interest from Coinglass reflected the bearish undertone captured by Santiment.
Although there was a slight increase in ADA’s Open Interest, rising by 4% to $230.74 million, the Open Interest volume has seen a nearly 30% decline.
This indicated that while there was some growing interest in holding positions in ADA, the broader investment enthusiasm has been waning.
Source: Coinglass
On a more positive note, AMBCrypto has reported a surge in activity on Cardano’s DEXes.
This uptick could be a silver lining, suggesting that despite the bearish sentiment and market challenges, there was active participation and interest in ADA’s decentralized finance (DeFi) capabilities.
From the technical front, analysts have revealed that the asset might be poised for a significant rally. Prominent crypto analyst, Captain Faibik, revealed the asset broke above a descending pattern, disclosing,
“ADA has left the train station.”
Faibik added,
“Expecting 2x Bullish Rally in the Midterm so don’t miss the Ride…”
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