Cardano shows mixed signals on the technical indicators, not to mention the on-chain data. Despite bullish trends in the metrics, ADA has been unable to gain significant price momentum.
At the time of writing, ADA is trading around $0.34, experiencing a slight 4% dip in the past 24 hours, leaving investors wondering whether it’s the right time to buy or wait.
Cardano received a strong vote of confidence from the crypto community. In a recent survey conducted by Weiss Crypto, ADA won the title for the altcoin with the best technology, receiving over 76% of the votes. This shows that the community still believes in Cardano’s long-term potential.
There’s some hope shown for ADA holders based on on-chain data. Coinglass reports that ADA’s Long/Short Ratio reads at 1.0167, meaning traders are feeling pretty bullish. Futures Open Interest has grown by 3% in the last 24 hours and has been up since the beginning of September 2024.
Despite the bullish data on-chain, ADA hasn’t managed to break out of the current range thus far. Even with the optimism indicated by the Long/Short Ratio and growing Futures Open Interest, ADA’s price is stuck at around $0.33. The larger crypto market’s bearish sentiments are affecting its short-term performance.
The overall market sentiment remains neutral at 49, based on the Fear & Greed Index, which indicates caution. Most analysts advise waiting for stronger bullish signals before buying ADA.
The recent surge in whale activity could also have a role to play—on September 17, these massive crypto holders moved 19.5 billion ADA tokens, worth around $6.48 billion, according to IntoTheBlock. Such large movements often signal upcoming price changes, and investors are watching closely.
Though the on-chain metrics are bullish regarding Cardano, general market conditions are quite dim. Its short-term movement is limited while the community hopes the altcoin will prove its mettle as it works its way up the altcoin ladder.
