The global cryptocurrency market has been following the same pattern for a few days now. Although leading tokens are still negative, the balance has shifted back to them.
Throughout February, the seventh-largest cryptocurrency by market cap, Cardano has been in a negative downturn, leading up to its current market price.
The bearish side has generated selling pressure, which is a poor indicator for Cardano. Following a two-day bullish trend, the market went into a bearish trend, with ADA losing steam.
ADA price has dropped below $1.20, and it is currently trading around $1.05.
Cardano On-Chain Analysis
Cardano sees a 167 percent spike in new addresses, indicating a huge increase in on-chain activity. According to a notable crypto specialist, the metric’s steady rise frequently indicates a spike in ADA’s price volatility.
According to the analyst, the number of new daily addresses created on the Cardano network has increased by about 167 percent to 112,500. According to the expert, sustained growth in this parameter frequently indicates a spike in ADA price volatility.
Furthermore, the entire trading volume of a leading decentralised exchange on the Cardano blockchain, SundaeSwap, has topped 100 million ADA.
According to Messari’s latest data, Cardano is the most active cryptocurrency in terms of transaction activity, outpacing Ethereum. Cardano has surpassed Ethereum in terms of transaction volume, with $15.06 billion compared to $6.71 billion for Ethereum.
Cardano is undervalued, according to the latest statistics from the crypto analysis site Santiment. This conclusion is based on an indicator known as the Market Value to Realized Value (MVRV).
What’s Next For ADA Price ?
Currently, ADA price is consolidating after retesting the critical support zone at $1.05. The psychological level of support at $1.00 continues to be crucial for ADA. If the altcoin plunge below this level it would indicate the continuation of the recurrent downturn, with targets as low as $0.91 and $0.82
But to make a trend reversal ADA must break away the bearish sloping line at $1.12.
If the crypto can defy the trend and break over the $1.25 resistance level, it may climb to at least $1.45 before seeing a spike in bullish short interest.