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Bitcoin (BTC) continues its downward trend, affecting most cryptocurrencies, including Cardano (ADA). Experts suggest that historical data indicates a high likelihood of ADA initiating a bull rally. The cryptocurrency market tends to follow Bitcoin, and since the leading cryptocurrency’s value dropped below $66,000, most crypto charts have turned to a downward trend. Cardano is no exception as its value has fallen by more than 12% in the past week.
ADA’s Analytical Reports
According to the website 21milyon.com, the token’s price has dropped by over 3% in just the last 24 hours. At the time of writing, ADA was trading at $0.5666 with a market capitalization of over $20 billion, making it the 9th largest cryptocurrency. The decline in the cryptocurrency’s price has negatively affected market sentiment. Santiment’s data indicates a drop in ADA’s weighted sentiment, suggesting a dominant downward trend.
However, its social volume remains high, reflecting its popularity in the crypto space. Additionally, a popular ADA analyst, Cardano Dapp, recently tweeted about an interesting historical event. When BTC‘s price last reached its all-time high (ATH), ADA followed the trend and reached its ATH after 90 more days.
ADA Price Analysis
Since BTC’s price reached $73,000 a few days ago, if history repeats itself, investors could witness ADA starting a bull rally soon. Moreover, ADA’s Market Value to Realized Value (MVRV) ratio was at -23.6% at the time of writing. Such low MVRV ratios can often trigger a reversal in the trend. The Network Value to Transactions (NVT) ratio also recorded a sharp decline. When the metric drops, it indicates that a token’s value is low and could signal a potential price increase in the coming days.
Despite the above measurements indicating an uptrend, technical indicators show a downward trend for ADA. For example, the Moving Average Convergence Divergence (MACD) displayed a clear bearish trend in the market. The Money Flow Index (MFI) declined and moved further below the neutral level. The Relative Strength Index (RSI) followed a similar downward trend, which could indicate a high probability of price declines.
