Categories: Crypto NewsNews

Cardano(ADA) ends April on a bearish note; Here’s what to watch for in May

Published by
Nonhlanhla P Dube

After breaking through its support line, Cardano’s native coin ADA maintained its bearish performance for another week. However, the cryptocurrency is already exhibiting signs of a possible trend reversal, which could pave the way for a bullish uptick.

Top freelancers for every business

At the time of writing, ADA was trading at $0.78 (R12,52), nearly 36% lower than its peak of $1.24(R 19,90) in April. It delivered a bearish performance during the month, erasing the gains made during the March rise.

Since February, ADA has been trading in a megaphone pattern, with its price limited between support and resistance. During the last week of March, however, it broke out of the range in favour of more downside. The most recent price activity for ADA implies that it may be about to recover from its present lows.

Expectations for a bullish reversal are predicated on oversold conditions. On 30 April, ADA’s RSI temporarily fell below 30, while the MFI indicator flirted with the accumulation zone after short falling to 19. ADA’s DMI reveals that price movement has been strongly bearish in recent weeks, although –DI has recently pulled below the ADX. This indicates that the bears are losing steam and may give way to the bulls.

Make Extra Money With Online Surveys

What can we learn about ADA’s present status from on-chain metrics?

In April, ADA’s MVRV ratio was at its lowest point in the month. This implies that very few ADA holders profited at the end-of-month price levels. Its 2-year dormant circulation metric reveals an increase between April 22 and 24, indicating that a considerable amount of ADA was moved during that time period. Following that, the price fell even lower.

In the last three days, ADA’s Dormant supply metric has remained reasonably inactive. This indicates that long-term HODLers are not selling at cheaper levels and may be waiting for a price increase. A closer look into ADA’s supply distribution reveals that accounts holding 100,000 to 1 million coins decreased during the month.

The supply distribution for larger accounts above one million has increased, particularly in the recent two weeks. This confirms that whales have been amassing at lower price levels.

According to its indicators, a higher concentration of ADA supply in large accounts corresponds to oversold conditions. However, this does not mean that ADA is free of its drawbacks. There is still room for the bears to flex their muscles, especially if the position is shaken down for an extended period of time.

Make Extra Money With Online Surveys

Begin to earn Rewards from Day One!

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

Published by
Nonhlanhla P Dube
Tags: ADACardano