Cardano has experienced a notable turnaround in the past three days, reversing the bearish trend that caused ADA to lose 29% of its value in just three weeks, reaching a low of $0.45.
However, despite this recovery, Cardano has yet to regain its market interest. Its funding rate remains unimpressive, the Relative Strength Index (RSI) struggles to surpass the halfway point, and the supply of ADA in profit is declining.
Cardano’s ADA had a difficult start to the year. On January 2nd, it reached its highest price of 2024 at $0.6317 after an impressive rally in December. However, it then entered a bearish period, losing 29% and hitting a low of $0.45. Over the past three days, it has been making a recovery that experts believe could set the stage for a stronger performance in February.
Currently, ADA is trading at $0.4874, experiencing a 1% loss in the past day. Its market capitalization stands at $17.26 billion, making it the eighth-highest in the cryptocurrency market.
Although data shows a 2% loss over the past week, a closer look tells a different story. ADA started the week at $0.4968 but quickly dipped on January 23rd, reaching a monthly low of $0.4501. Since then, the token has been on a recovery path, reaching a new weekly high of $0.4985, marking a 10.7% gain in five days.
Some on-chain metrics have also shown improvement during this time. The Relative Strength Index currently stands at 53, up from an average of 40 in the past day, indicating that investor confidence in ADA is gradually returning.
However, despite this recovery, investors remain skeptical about ADA’s long-term potential. Trading volume has dipped by 6.2% over the past day, reaching its lowest level in the past week at $290 million. The funding rate has remained largely unchanged throughout the month, and while bulls still seem to have control, their aggressiveness has decreased compared to December. This lackluster demand is also reflected in the open interest, which has barely moved over the past two days, standing at $208 million.
Other metrics that present a less favorable picture for Cardano include the percentage of ADA supply in profit. This figure dropped from its peak of 70% in December to 60%, but it has slightly recovered since then.
Looking ahead, despite the unimpressive price performance, Cardano’s ecosystem continues to experience significant growth. The DeFi space, in particular, has been thriving, with a total value of $334 million locked in at the moment. This represents a 318% growth over the past year, with platforms like Indigo and Minswap playing a significant role. Additionally, newcomers like MuesliSwap have witnessed a 70% increase in users in just one week.
In another exciting development for the Cardano community, the team behind Fluid Tokens has released an implementation of the new native Cardano standard for ERC20 tokens. This allows tokens like USDC and other Ethereum tokens to be issued on the Cardano network without any changes to the blockchain.
For more information about Cardano and its latest developments, you may refer to the following resources:
– Buy Cardano Guide
– Cardano Wallet Tutorial
– Check 24-hour Cardano Price
– More Cardano News
– What is Cardano?