Cardano (ADA) Stagnates at $0.52, Bullish Reversal Forecasted
Cardano (ADA) Price Stagnates at $0.52, But Predictions Indicate Uptrend
The price of Cardano (ADA) seems to be stuck at $0.52, but predictions point to an upward trend. ADA’s MVRV ratio is negative, suggesting that holders are suffering losses and the token is slightly undervalued.
Cardano Shows Bullish Structure Despite Weak Social Sentiment
Cardano had a bullish structure and momentum, but the social sentiment was weak. A wipeout of liquidity below $0.5 seems likely. Cardano [ADA] experienced a bullish market structure shift on January 29. However, buyers were unable to capitalize on the momentum and make the $0.52 mark a support. The weighted social sentiment behind the token has also decreased in the last ten days.
Signs of a Price Recovery?
A post by Santiment on Twitter (formerly X) noted that many major altcoins are showing a stronger bearish sentiment than usual. The post suggested that this could be a sign that a price recovery is imminent. Could the increasing FUD (Fear, Uncertainty, and Doubt) in the crypto market mean we are experiencing a bullish short-term reversal as prices head towards liquidity?
Cardano Metrics Not Encouraging
The metrics for Cardano are not encouraging. The weighted sentiment indicator has shown a downward trend since December. On the other hand, the RSI (Relative Strength Index) has highlighted a shift in momentum in favour of buyers. It has crossed the 50 mark. This confirms the previously mentioned idea of ADA’s bullish market structure break.
Liquidation Heatmap Provides Insight
The metrics analyzed by Santiment showed conflicting signs. The price action favoured the bulls, but the sentiment remained lukewarm. The liquidation heatmap with a lookback period of three months from Hyblock highlighted two key areas. The first was the $0.47-$0.481 region, which was estimated to have several liquidation levels worth $300 million. Given the proximity to the price, a drop to eliminate this liquidity before a bullish reversal occurs is a possibility. To the north, the $0.54-$0.56 was also estimated to have a similar amount of liquidation levels. Therefore, the trend of Bitcoin [BTC] will likely also influence ADA’s next move.
Sources: AMBCrypto, Santiment, Hyblock