In recent days, many altcoins have lost value due to their high correlation with BTC. So what is the current situation on the ADA coin front? Hopes were high for Cardano, especially since it received smart contract capabilities in late 2021. Many investors took advantage of the low price in the $0.25 region, but after that?
Cardano (ADA) Ratings: What Do Experts Say?
Only 24% of Cardano (ADA) holders keep their profits at the current price level. The price of the ADA coin is approaching its 200-day simple moving average for the first time in almost a year. What does this mean for Cardano traders? Cardano’s impressive 64% gain at the beginning of the year has fallen 5% in the last seven days. The slight downward trend can be attributed to a decline in daily trading volumes and losses on the bitcoin front.
Data from Coinmarketcap shows that the number of daily transactions on the Cardano network has decreased in line with the ADA price. Since the beginning of February, trading volume on the network has dropped by about 28 percent. In the past, we have seen that the coin price followed a downward trend in parallel with the decrease in the number of transactions. In the medium to long term, we can say that this process will continue for a while.
Should I Buy ADA Coin?
The direction of the ADA Coin price is largely determined by the Bitcoin price. The correlation between the two is around 96%, and the bitcoin price has been testing the $22,300 support level for several days. At the time of writing, BTC was trading below $25,600, and the correlation between ADA and BTC has tightened since mid-January. Weak sentiment in the bitcoin community this month due to the recent decline in whale activity has dragged ADA and many other altcoins lower. The ADA token price is approaching its 200-day simple moving average for the first time in a year, reinforcing the possibility of a positive divergence in the market.
You may be interested in: Ethereum Technical Analysis: Ethereum Struggles To Hold On!
