Cardano: When will the ‘gloomy Sunday’ of ADA holders end

Cardano: When will the ‘gloomy Sunday’ of ADA holders end

You bought ADA when it was at its all-time high and you are listening to the Hungarian suicide song at this point in time, you might be right doing that. They say, too much high hope is a way to create too many disappointments. And, ADA holders have been feeling that very closely.

But, what’s the matter?

The ‘development’ narrative and an anticipation of an unseen hike have left investors joking about their investing decisions. After ADA’s high in September 2021. the coin has been following a downward trajectory- halting at places to form a plateau.

Even though March 2022 saw many of the altcoins recovering, ADA was busy planting a new low. In fact, on 10 March, it reached a low of $0.790 last seen in February 2021. However, it has recovered since. At the time of this analysis, ADA was trading at $1.042 with no signs of recovery in sight. The resurgence of demand could see the coin test its ceiling at $1.626. However, for the coin to reach its all-time high, ADA will have to flip its very strong resistance at $2.252.

The probability of which looks bleak at the moment. RSI and MACD after 4 April have flashed bearish signals. Interestingly, the volume oscillator has been in the negative territory post 27 March 2022.

Source: TradingView, ADA/USD

Even though development activity has been impressive, 3.69m addresses are out of the money, at the time of this analysis. It clearly shows that many of the ADA holders are not enjoying the benefits of their investment.

Source: IntoTheBlock

It’s here to be noted that after 10 March, the number of large transactions on the ADA network saw a spike. This doesn’t really reveal if ADA was being bought or sold for that matter. However, looking at the price chart, it can be inferred that perhaps investors were buying the dip as the price saw a recovery after 19 March.

Source: IntoTheBlock

In fact, ADA’s correlation to BTC has also been rising in the last three months. Especially, after 19 March, the correlation increased from 0.42 to 0.96 at the time of this analysis. Thus, investors should keep a strict watch on BTC’s price moves before deciding to open a position.

Source: IntoTheBlock

Given all the above-mentioned factors, the best thing an ADA holder can do is to ‘wait’ for a rally. They can even choose to HODL for a long time.

Manisha is a News Editor at AMBCrypto. With a Master’s degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

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