Will ADA Continue to Rally Due to Positive Sentiment?

  • On-chain tracker Santiment revealed that ADA is at its highest sentiment since April.
  • Adding that the coin has not been profitable since the last week of March.
  • At the time of press, the price of ADA is at $0.565 as per CoinMarketCap.

Cardano is looking at the highest positive sentiment since April, with the highest profit taking of its profit/loss ratio since the cryptocurrency was sitting at a $1 level in March. 

According to the data from on-chain and social metrics tracker Santiment, the sentiment of ADA is fairly positive at the time being, with its price reaching a 22% increase in the past three weeks, as per the chart trends on the crypto market.

Cardano’s trading volume is currently down almost 20% in the past 24 hours, which means the coin gravely needs trading volume and new inflows to continue the rally.  However, investors and traders keep on taking profits with the little recovery of ADA’s price and it might not be favorable for the potential prolongation of the rally.

The data also suggests that the network has not been as profitable since the final week of March. The ratio connecting taking profits and selling at a loss is at the highest level we have not experienced since the last three months.

ADA is currently ranked 6th most largest cryptocurrency, with a market cap of more than $19.1 billion. Cardano’s native token is trading at $0.565, up 1.37% in the last 24 hours according to CoinMarketCap.

Meanwhile, the CoinMarketCap community received mixed comments from its users. Some stated that ADA will be at a bearish pull back if it hits the $0.55 resistance level, which allows its price to face a high selling pressure. This means that the $0.55 demand zone is crucial for ADA prospects.

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Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.