- Cardano’s rally appears to be running out of steam.
- ADA has dropped 15% since tapping its new yearly high.
- The following weeks will determine if ADA continues its rally.
Cardano kicked off March on a promising note, reaching $0.8 for the first time in two years, sparking hopes of hitting the highly coveted $1 mark. However, while holders celebrated the historic milestone, the market poured cold water on the celebrations, causing ADA to spiral toward liquidity.
Cardano Searches for Liquidity
Cardano recently found itself under the spotlight for its remarkable performance in February and early March, gaining over 64% after smashing through resistances once thought impossible to break.
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However, since tapping its new yearly high, ADA has performed far from expectations, dropping 15% and showing minimal signs of investor confidence. The lack of price movement and strength in Cardano could be attributed to its overwhelmingly negative long-to-short ratio, indicating more sellers in the market than buyers.
While market sentiment slightly tilts toward being bearish, ADA still boasts a bullish structure. Over the following weeks, Cardano could set its sights on tapping $1. However, the journey wouldn’t be without challenges, and achieving this milestone all hinges on fresh capital into Cardano.
Charts reveal an indecisive market, with ADA consolidating in a tight range between $0.75 and $0.69. However, the weekend’s typically lower trading volumes could influence the current price action. Still, historically, the market is often preparing to make a major move during such periods.
There’s a strong possibility that ADA could revisit liquidity gaps below $0.7 to gather momentum and propel upwards. The following weeks will determine whether Cardano will continue its rally or consolidate for the rest of the quarter.
On the Flipside
- Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
- ADA is up 63% this year.
Why This Matters
As an asset, Cardano has lagged behind its rivals, Bitcoin and Ethereum, which have recently marked new all-time highs. Such moments of weakness could potentially instill apprehensions among sellers, hindering ADA’s growth.
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