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Cardano (ADA) sees significant drop in interest, though it is likely poised for a rally

Published by
Nonhlanhla P Dube

According to recent data, Cardano (ADA) appears to be more impacted by a bear market than some of its other main rivals.

The coin has dropped 2.2 % in the last week to R7,71, despite sustained rises in the majority of the top ten cryptocurrencies.

While excitement about the blockchain’s imminent Vasil Hard Fork drove some price increases earlier this month, it now appears to have subsided. ADA is down roughly 25% in June and is trading near its lowest levels in 14 months.

Daily trading volumes in ADA have also dropped significantly, from a high of R38 billion earlier this month to around R11 billion in the last two weeks.

However, if significant whales begin to accumulate, lesser volumes might set the token up for a strong surge.

Cardano experiences a significant decline in unique addresses and sentiment

According to data from blockchain analytics firm Santiment, the number of unique addresses interacting on Cardano has dropped to its lowest level in a year, owing to decreasing sentiment.

Sentiment about blockchain has also fallen to its lowest point since February when the Russia-Ukraine crisis began. On Monday, Cardano saw around 53,050 unique addresses interacting on the chain, with an average of 73,204 addresses over the previous 30 days.

Cardano

However, while Cardano has experienced a significant reduction in sentiment, most other altcoins have also experienced comparable weakness. This year’s crypto meltdown has seen the top ten altcoins lose between 50% and 80% of their value. ADA is down almost 63 %.

Lower prices and trade volumes, on the other hand, could set up these coins, particularly ADA, for a rapid rise.

The Argument for an ADA Rally

Due to lower trading volumes in ADA, any major transactions would have a direct impact on the price. As a result, large-scale buying by Cardano whales could cause a rapid increase in ADA pricing.

Given how much prices have plummeted this year, ADA could draw bargain-hunting interest at current levels or even after further drops.

The impending Vasil Hard Fork, which is scheduled to take place in the second half of 2022, may also fuel interest in Cardano.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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