Cardano was once the third-largest cryptocurrency, but its recent performance has fallen far short of expectations. As November is just around the corner and 2021 is just around the corner, Cardano doesn’t see an optimistic outlook from a market standpoint, and it really isn’t.
Choose Cardano or not?
Cardano has become the most unpredictable asset on the market as price action, investor behavior and network performance all show different signs.
First of all, ADA refused to rebound from the $1.9 support level last month and fell 12.2% three days ago. The transaction price of the altcoin is $1.6, which is the current level in August. This turned the long-term support of the 200 simple moving average (orange SMA) into resistance and now the ADA is absolutely bearish.
Cardano Price Trend | Source: TradingView – AMBCrypto
This is also reflected in the net asset flow. Compared to other altcoins, Cardano has had its worst performance this week as it has leaked $2.1 million. This number represents, on average, more than 100 million ADA sold per day in the last 10 days.
Cardano registration leak | Source: CoinShares
Now this is where it gets interesting. It makes sense to look at the rush of price-moving investors, as investors expect them to clear the market. However, the number of active addresses and transactions broke all-time highs yesterday, and the total addresses remained unchanged.
Number of Cardano Transactions | Source: Intotheblock – AMBCrypto
However, there is nothing wrong with trading volume. On the other hand, the correlation between Cardano and Bitcoin returned to 0.88, and development activity, which fell to the lowest level in three years, resumed.
Cardano Development Activities | Source: Santiment – AMBCrypto
However, investing in ADA is still not a lucrative idea as it has a risk-adjusted return of minus 2.63. Additionally, Israeli exchange eToro recently announced that it has decided to delist Cardano before the end of the year due to regulatory concerns.
Bitcoin Risk-Adjusted Return | Source: Messari – AMBCrypto
Nevertheless, investors remain bullish and Cardano continues to remain socially relevant.
These mixed signals are not helping anyone. Because 55% of all investors are already losing money, so new investors may face losses. So, for now, the only entry point is for Cardano to truly resume the decline and rise above $1.9 (see Cardano price chart). Once changed again and tested as support, you can consider investing in an ADA.
Information Source: Compiled with 0x information from AMBCRYPTO. The copyright belongs to the author and reproduction is prohibited.
