- The ADA is down 13% in the last 24 hours
- Technical indicators suggested that a further price decline is in the works
Cardano [ADA] is in the news today after unveiling March’s development highlights. However, that’s not the only reason it made headlines. In fact, it did so for the wrong reasons too, after ADA was in the red on the charts and fell 13% thanks to the market crash.
Cardano is doing well in the field of development
AMBCrypto’s review of Santiment’s data found that development work around Cardano has remained at a high level. This was reflected in the development activity graph, which remained steadily high in March.
Source: Santiment
Input Output, the developer of Cardano has an X wire to share developers’ efforts during the last month of the first quarter. Similarly, the teams released Cardano node v.8.9.0, which introduced Genesis Lite bootstrap peers, recertifying a bug to improve overall performance.
To improve scalability, the Mithril team also released Mithril distribution 2408.0, which includes improvements to stake distribution. Apart from this, the report also stated that ADA’s total number of transactions increased by 2.3 million during the month. Additionally, three new projects were launched on the Cardano blockchain in March.
Cardano faces the wrath of the bears
Cardano left March with a slight decline in price, compared to the beginning of the month, when the price fell to $0.64. April did not bring good news for investors either, as the token’s price fell by almost 13% in 24 hours.
According to CoinMarketCapAt the time of writing, ADA was trading at $0.5071 with a market cap of over $18 billion, making it the 10th largest cryptocurrency. The possibility of ADA’s price falling further in April seemed likely as most metrics showed bearish signals.
Our analysis of Santiment’s data showed that Cardano’s MVRV ratio fell sharply. At the time of writing it had a value of -18%. Sentiment around ADA also turned bearish, as evidenced by the drop in weighted sentiment on April 12. Furthermore, the token’s NVT ratio spiked sharply. A rise in the measure indicates that an asset is overvalued, signaling a further price decline in the coming days.
Source: Santiment
Read Cardanos [ADA] Price prediction 2024-25
We then analyzed Cardano’s daily chart to see if the indicators also pointed to a further price decline. ADA’s MACD showed a clear bearish upper hand on the market.
Moreover, the Chaikin Money Flow (CMF) recorded a sharp decline on April 12. Both technical indicators supported the sellers and indicated that investors could witness ADA’s value decline in the coming days.
Source: TradingView