Cardano (ADA) Price Starts to Lose Traction – but Can the Trend Be Reversed?

Only 24% of Cardano (ADA) holders are making money at the current prices. But on-chain data shows that ADA price is approaching the 200-day simple moving average for the first time in nearly a year. So can the Cardano bulls flip the bears in the coming days? 

Cardano suffers 5% Correction Amid Decline in Transaction Volumes

The impressive 64% gain for Cardano at the start of the year has been cut by 5% in the last seven days. The marginal downward trend appears to be due to the declining daily transaction volumes and Bitcoin correction. 

Cardano Transaction Count Feb 1 to Feb 8. Source: IntoTheBlock

IntoTheBlock data shows that the number of daily transactions on the Cardano network has declined in unison with the price of ADA. Since the start of Feb. transaction count has fallen by 28%. 

Historically, a fall in the frequency of transactions on the Cardano network has correlated with periods of ADA price downtrend. 

Can ADA Pull out of the Bearish Bitcoin Snare?

Another critical factor contributing to the recent ADA price correction is its 96% correlation to BTC prices. 

Cardano (ADA) and Bitcoin Correlation. Feb. 2023. Source: Santiment

The correlation between ADA and BTC has grown tighter since mid-Jan. And with a pensive social sentiment surrounding Bitcoin this month amid a recent drop in whale activity, it has caught ADA and other closely correlated alts in a bearish snare. 

Will Cardano Flip the 200-Day Average to Start a Mid-Month Rally?

It is not all doom and gloom for the Cardano price this month. The ADA token price is approaching its 200-day simple moving average for the first time in a year. This could set an optimistic turn of events in motion. 

Cardano (ADA) and Bitcoin Correlation. Feb. 2023. Source: Santiment

ADA closed at $0.39 on Feb 8 to hit the 200-day SMA. For many investors, when an asset price crosses its 200-day simple moving average, it is a prime signal for an impending bullish turn. 


BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)

Related Posts

Gemini to Launch International Derivatives Platform Amid Binance Regulatory Woes

Gemini will launch perpetual futures for international customers, according to The Information.
The launch comes as U.S. authorities are investigating Binance for its derivatives offerings.
U.S. authorities are clamping down on exchanges following the collapse of FTX.

Bookmark (0)

Terraform Labs Co-Founder Daniel Shin Appears in Court for Interrogation

Terraform Labs co-founder Shin Hyun-Seong (Daniel Shin) was interrogated in court on March 30.
Shin was asked such questions as whether he had ever contacted colleagues abroad.
Co-founder Do Kwon was recently arrested, much to the joy of the victims of the Terra crash.

Bookmark (0)

Bitcoin Taps $29,000—Why BTC May Never Revisit Its Previous Lows

Bitcoin markets remain resilient amid U.S. war on crypto.
Halving narrative continues to strengthen.
BTC tapped a nine month high of $29,000.

Bookmark (0)

Jake Paul-endorsed SafeMoon gets hacked after introducing a bug in upgrade

A public burn function introduced in the latest upgrade allegedly allows users to burn tokens from other addresses.

Bookmark (0)

XRP price tags 10-month high — Can a 35% pullback be avoided?

A U.S. regulator called Bitcoin, Ether and Litecoin commodities in its court filing against Binance; it did not mention XRP anywhere.

Bookmark (0)

Did the SEC Target Spicer Jeffries for Being Crypto-Friendly?

SEC settles with Denver-based auditing firm.
Spicer Jeffries has ties with crypto firms and executives.
Gary Gensler requested a bigger budged to tackle crypto ‘misconduct.’

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *